Domogan bares timetable for Asin Minihydro Project

BAGUIO CITY – The city government aims to bid out the Asin minihydroelectric plants operation in February, Mayor Mauricio Domogan announced last Wednesday.

The mayor said the draft terms of reference (TOR) for the project which have undergone several revisions have been submitted for finalization in last week’s meeting of the Asin hydro technical working group.

He said he is confident that the TOR will be completed before the end of the month for submission to the city council for approval.

“Hopefully, the city council will approve the TOR immediately so that by February, the city could start sending out notices of invitation for bidding to various interested companies,” the mayor said.

The privatization of the plants’ operations has long been pushed by the city government to restore the viability of the facilities which slackened under its management due to lack of funds and expertise.

However, it failed to materialize as conflict persisted between the city government and the landowners whose properties are affected by the plants’ pipelines and facilities over compensation issues that also marred the formulation of the TOR needed to jumpstart the bidding process.

The privatization efforts took off only in October last year when the two parties settled their dispute and entered a compromise agreement resolving reparation issues that in the past resulted to disruption of the plants’ operations and even led to a court case between the parties.

As per the agreement, the city will compensate the landowners by way of rentals amounting to three percent of the net surplus from the operation of the mini-hydro plants subject to conditions that the rentals will be retroactive to year 2007 when the city assumed management of the plant; that the rentals will be subject to increase after three years; and that the rentals shall be payable to TNHLA which will assume the task of distributing the amount to the affected landowners.

The other terms under the agreement are that the landowners will have representation in the Bids and Awards Committee to witness the bidding process; and be entitled to privileges and other priority projects; priority in employment to the plant; scholarship programs for the heirs and subsidy in electric bills.

 
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ADVISORY

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STATEMENT IN REPLY TO THE PUBLISHED OPEN LETTER OF BCDA PRESIDENT and CEO ARNEL PACIANO D. CASANOVA

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Speech Delivered by Mayor Mauricio G. Domogan during the Cordillera Month Closing Ceremony
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