The National Electrification Administration (NEA) has announced that it plans to partially and temporarily take over the management of the Zamboanga City Electric Cooperative (Zamcelco) in order to help resolve key issues besetting the power co-op.
The impending NEA takeover is also primarily meant to ensure a smooth, orderly, timely and transparent process for the selection of a credible and experienced power distributor that will undertake the operations and management of Zamcelco under an investment management contract (IMC).
Zamcelco is reeling from a systems loss level of 23 percent and more than P2 billion in liabilities that includes over P1.3 billion in outstanding debt to power suppliers.
NEA Administrator Edgardo Masongsong made the announcement at the end of a power stakeholders summit presided over by NEA in Zamboanga City last Friday.
The summit, which was initiated by Zamboanga City Rep. Celso L. Lobregat, brought together the city’s various stakeholder segments, including consumer and industry groups, local and national government officials, as well as community and religious leaders.
Masongsong stated that NEA would undertake the partial and temporary takeover of Zamcelco in response to a unanimous clamor from stakeholders attending the summit for NEA to intervene and ensure a timely and transparent process for the selection of an IMC contractor. Among the attendees were Zamboanga City Mayor Maria Isabelle Climaco-Salazar and the city’s two Congressional representatives.
Masongsong said he expected to receive approval from the NEA board within the week of August 13.
There are currently five interested bidders for the Zamcelco IMC contract including the Manila Electric Co., the country’s largest power distributor through its subsidiary Comstech Integrated Alliance Inc., and AboitizPower subsidiary Davao Light and Power Co.