Ileco-I gives ATO until April 15 to settle P5.5M electric bill
Iloilo Electric Cooperative (Ileco)-I has given the management of the new Iloilo Airport in Cabatuan-Sta. Barbara until April 15, 2008 to settle their unpaid electric bills to avoid power disconnection.
The extension of deadline was reached after Iloilo Governor Niel Tupas Sr. appealed to Ileco-I general manager Wilfred Billena to give time to the Air Transportation Office (ATO) to settle its bills.
Ileco-I last week served a disconnection notice to ATO Iloilo Manager Allan Java for failure to pay the airport's electric bills from January to March reaching P6.5 million.
Java was able to pay an initial amount of P 1.5 million last Friday leaving their unsettled obligations at P5.5 million.
Tupas said he has talked with top officials of ATO central office who assured that they will settle their account in the matter of two weeks.
Tupas said the ATO officials told him that the electric bills for the new Iloilo Airport already has cash allocations in the 2008 executive budget.
"There is just a delay in the release of the budget said the ATO official," Governor Tupas said.
The governor tried to intervene to avoid the impending disconnection of power at the new Iloilo Airport.
"If that happens (referring to power disconnection) it would be very embarrassing on the part of the administration," Tupas said, adding "it would also disrupt our airport operations to the detriment of the public."
Sometime last month, Ileco-I also sent a power disconnection notice to the new Iloilo Airport but was averted upon the intercession of Governor Tupas.
Java in an interview said the delay in payment was due to the delayed release of their budget for this year.
He said it is the ATO central office which takes charge in the payment of the Iloilo Airport's electric bills.
"We are still in our first quarter so there is still a problem in our budget allocation," Java said.
Java, however, noted that the electric bill of the Iloilo Airport has increased since it transferred to its new site because of a number of new facilities that is being operated.
Java said the new airport has an average monthly electric bill of P2.2 million. Previously, the old airport in Mandurriao, on the average, has a monthly electric bill of only P240,000.
Java said they are on the process of increasing all fees and charges at the Iloilo Airport so they could earn income that could sustain the airport operations and cover their electric bills.
He said at present the airport's income could only cover on the airport operations.
Java said they are proposing a 300% increase in all fees and charges at the airport.
He is optimistic that by June this year the new rates would be implemented.