Issue of December 21, 2014

64th Courier Anniversary Issue
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Negotiations mulled for Asin hydro proj
by Hanna C. Lacsmana

Mayor Mauricio Domogan said the city will possibly go into negotiations, among other options, for the privatization of the Asin mini hydro power plants following the consecutive failures of the bidding process for the project.

In his weekly forum, the mayor said the city still has to find out if Kaltimex Energy Philippines, the contractor who won in the fifth bidding for the privatization, development, and operation of the city-owned hydroelectric plants, really cannot comply with the requirements provided in the terms of reference of the bidding.

“If it cannot, then we have no choice but to declare again a failure of bidding,” Domogan said.

Last week, the Special Bids and Awards Committee led by City Budget Officer Leticia Clemente gave the company until Dec. 16 to conform to the requirements set in the TOR. If it fails, the city will disqualify it from handling the project.

The firm was also asked to provide the details of the plan and amend other documents.

Domogan said at this point, the city may possibly go to negotiation since the bidding has already failed for many times. “So we will look into the option of negotiating it with interested partners or investors.”

Domogan said many investors signified their interest to enter into an agreement with the city with regards the Asin plants. However, most of them find it hard to comply with the TOR.

The privatization of the operation and management of Asin mini hydro power plants has an approved contract budget of P500 million and has a duration of 20 years.

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