GMA, allies hit for taking control of power sector

LEGAZPI CITY--THE MILITANT group Bayan-Bikol (Bagong Alyansang Makabayan) sounded the alarm bells as it alleged President Macapagal-Arroyo’s relatives and allies to be inching their way to the “lucrative” power industry.

This came after Aboitiz Power Corp. affiliate AP Renewables Inc. topped the bid for the government’s 747.5-megawatt Tiwi-Makban geothermal facilities in Albay, Laguna and Batangas provinces with an offer of $446.9 million.

The Lopez group’s First Luzon Geothermal Energy Corp., offering $368.4 million lost in the bid.

Tessa Lopez, Bayan-Bikol spokesperson, said the Aboitiz group is “most-favored” by Ms Arroyo because her brother, Diosdado Macapagal Jr., is one of its owners.

“Now all indications point that (Ms Arroyo) wants to control the power sector. The moves of her relatives and allies to corner the power market are part of a game plan,” Lopez said.

The militant group bared a time line showing Ms Arroyo’s “ulterior motives to control the power sector.”

First, Lopez said, President Arroyo authored the Electric Power Industry Reform Act (Epira) as a senator, then approved it as President.

Then she ordered Dato Arroyo to run for congressman of the first district of Camarines Sur.

Afterwards, her eldest son, Mikey Arroyo, was placed as head of the energy committee in Congress with Dato and Negros Rep. Ignacio “Iggy” Arroyo as members.

Also, the bidding for the 25-year concession contract to operate the National Transmission Co. (Transco) was won by Monte Oro Grid Resources Corp., which is owned by Ms Arroyo’s ally, Enrique Razon Jr., who is “discreetly tied to her brother Diosdado Macapagal Jr.”

Monte Oro Grid Resources Corp. is the same company that is financing the proposed coal mining in Catanduanes province, Lopez added.

“Arroyo appointed her close ally Zenaida Ducut as the chair of the Energy Regulatory Commission [ERC]. Then she ordered the takeover of the Albay Electric Cooperative [Aleco], which is a transition to privatization,” Lopez said.

On the Manila Electric Co. controversy, Lopez said, “Of course, Meralco and the Lopezes have to be investigated on claims that Meralco over-charged and even passed its electric bills to consumers, at the very least they should refund this to the people.”

But, she said, the public should remain vigilant against possible ulterior motives that the President has to control the power industry.

Exploration of the geothermal area in Tiwi started in 1972. A year after, the Naglagbong well was discovered.

At present, there are 39 production wells and 21 injection wells at the site.

Tiwi geothermal, which started commercial operations on Jan. 11, 1979, had an installed capacity of 289 megawatts and available capacity of 234 megawatts as of July 2007.

Its cumulative gross generation as of December 2005 was 40,166 gigawatt-hours. Ephraim Aguilar, Inquirer Southern Luzon