White elephant?
Silla pushes for SP probe on multi-million power substation

By Florence F. Hibionada

“Where is our power substation? What happened to the over P15 million we have spent thus far for it? I demand answers and the people must know now.

Silla

First District Board Member Bernardo Silla has called for an immediate probe on the multi-million power substation project of the Iloilo Provincial Government.  With issues raised primarily on the failure of the Capitol to see the project’s implementation and realization, Silla, a key figure in the Sanggunian Panlalawigan’s (SP) “conscience bloc” presented his concern in a privilege speech delivered yesterday (Tuesday).

“Just asking,” he said as he went on to narrate perceived irregularities and anomalies surrounding the project designed to bring savings and stable power supply to the Capitol. 

To recall, Governor Niel Tupas pushed for the power substation back in 2002.  Latest mis-development as disclosed by Silla was the suspension order issued by the Governor in favor of the contractor.
Dated August 23, 2005, Tupas wrote Engineer Avelino Pacifico, Managing Director of the Ferrowelds Construction Corporation stating that until further notice, the Capitol’s contract with said company is to be suspended.

Such, the Governor wrote, is to remain until the Energy Regulatory Commission “resolve the issue on PECO’s opposition of our line construction.”

“An order to resume the works will be issued to you as soon as we had received favorable resolution from ERC,” Tupas wrote in the suspension order, a copy of which was obtained by The News Today.

Yet as Board Member Silla pointed, the ERC issue pending resolution is between Panay Electric Company (Peco) and Philippine Foremost Milling Corporation (PFMC).

“We have no case before the ERC.  It is Foremost and PECO who has the problem.  Philippine Foremost which is a private company with private interests and profit-oriented.  Meantime that their case is unresolved, what do we tell the people, that we sit back and relax because we made a mistake in this project that used up millions of their hard-earned tax money?,” Silla said when reached for comment by The News Today.  “What is our business with Foremost? Why are we suddenly dependent on the outcome of their case with PECO? Is our link with said company legal and regular?”

On top of the present scenario Silla raised a question on whether the project, as designed, will ever be realized.

“Until then, we pay an average of P1.2 million to PECO for our monthly electric bill when it was promised to us before that with the power substation, we could have a savings of at least P300,000 a month.  I fear that this is to become a ‘white elephant’ for the Iloilo Provincial Government,” he ended.

In earlier interviews, Governor Tupas allayed fears that the project would become a white elephant.

He said everything is already in place and once the conflict between Foremost and Peco is resolved the power sub-station could immediately become functional.