ERC sets public hearing on Capitol's power substation
Arguments will officially be heard Thursday on Capitol's plan to put up its own power substation and do a direct power connection.
This, after the Energy Regulatory Commission (ERC) scheduled the public hearing that is expected to gather key officials of the Iloilo Provincial Government, both proponents and oppositors of the planned direct power connection.
The Capitol substation valued at least P15 million has since been erected yet failed to go operational for lack of pertinent papers. For instance, it was just recently 'discovered' that no application was made to the ERC and whatever supposed connection there was has been attached to the project of a private business establishment, the Philippine Foremost Milling Corporation (PFMC).
PFMC moved to 'let-go' of its Capitol link after Panay Electric Company (PECO) manifested its strong objection. And all was verbal anyway, the disclosure was made in the ERC PECO-PFMC decision.
In an interview, Provincial Legal Office Chief Salvador Cabaluna told The News Today (TNT) the Provincial Government will lay down its cards and push for the application in the first scheduled ERC hearing.
And the Capitol is confident, Cabaluna added, that all will go well and the power substation will be given the go-signal as long planned.
To recall, controversy erupted on the non-operation of the multi-million project feared to be a 'white elephant' of the Iloilo Provincial Government.
First District Board Member Bernardo Silla then led the fight against it as he called for investigation.
Documents then gathered by the Iloilo Sanggunian Panlalawigan (SP) showed meetings of key Capitol figures that acknowledged daily losses of at least P7,000 a day. The power substation was pushed to generate savings to the at least P1 million electric bill of the new Capitol building and for stable power supply.
The document as also obtained by TNT was signed by former Bids and Awards Committee (BAC) -- Technical Working Group (TWG) chairman, Simeon Leal. It also bore the signature of Governor Niel Tupas, then BAC chairman.
The statement on the P7,000 per day losses "more or less," was made by Engineer Salvador Castellano of the Provincial Engineer's Office (PEO). Such came after Ricardo Provido, BAC member commented on the effects of postponing the bidding process.
At that time, the Capitol was still considering the offers made by two bidders, Meiscor Builders Incorporated and JITS Construction. Both went beyond the Approved Agency Estimate (AAE) of P12,964,249.99. Meiscor's bid was P31 million while JITS was P23,818,960. Additional documents would show a different AAE of P13 million with Meiscor Builders lowering its bid to P22.5 million.
"Mr. Provido commented, we are always hearing that any postponement would cause some amount of money. What factors may cause the provincial government losses (sic) in case there is a delay in bidding, because the guidelines state within fifteen days? So what would be the losses that the province would incur within fifteen days delay if ever we adopt the second option? How much would be the savings and how much we would be losing?," excerpts of the minutes of the BAC meeting stated.
Based on the document, present during the meeting alongside the Governor were Provincial Treasurer Melba Sullivan, Board Member Bernardo Silla, Manuel Mejorada, Provincial Engineer Gracianito Lucero, Engineer Romeo Andig, General Services Office Chief Ramie Salcedo, Pacific Orient Construction's Ruel Magalang and Chito Osorio and contractors, Joefer Espino of JITS Gerardo Camaya and Rodolfor Neri of Miescor.
The issue on the delayed Capitol power substation is the subject of investigation by the Sangguniang Panlalawigan's committee of the whole. With an earlier nod gathered from the majority bloc for an investigation by the Committee of the Whole, the move faced indefinite suspension for technical reasons.
No internal rules and guidelines, no probe, the majority decided. It was not immediately known when the investigation will be done however Board Member Silla made the assurance that the delay is just temporary.
To date, no probe nor results were realized.