NEA takes over Zamcelco over P 2 B debt

power grid

In a move to help resolve Zamboanga City’s energy problem, National Electrification Administration (NEA) Administrator Edgardo Masongsong revealed the agency’s plans to partially and temporarily take over management of the Zamboanga City Electric Cooperative (Zamcelco).

The announcement was made over the weekend at an Energy Summit initiated by Zamboanga City Rep. Celso Lobregat.

Earlier this month, Lobregat had appealed to the NEA to intervene in the power cooperative’s operations, specifically its investment management contract (IMC) bidding.

Zamcelco has been suffering from a systems loss level of 23 percent, on top of P 2 billion worth of liabilities including P 1.3 billion in outstanding debt to power suppliers.

The impending NEA takeover is poised to ensure a smooth, timely and transparent process in selecting a credible and experienced power distributor that will take over Zamcelco’s operations and management moving forward.

Key power stakeholders including consumer and industry groups, local and national government officials, as well as community and religious leaders. Masongsong presided over the summit.

The NEA chief said he expects to receive the approval of the Board within the week.

There are currently five interested bidders for the Zamelco IMC contract, including the Manila Electric Company (Meralco) through its subsidiary Comstech Integrated Alliance, Inc. and Aboitiz Power subsidiary Davao Light and Power Company.


Source 1