Hydro plants profitable, says exec
DAVAO CITY—A Malacañang official said she was among those opposing the sale of the Agus and Pulangi hydropower plants because it wasn’t justifiable.
Luwalhati Antonino, head of the Mindanao Development Authority who enjoys a Cabinet rank, said privatizing the two facilities was unjustified because the government was not losing from their operations.
“We know that Agus and Pulangi have been net earners. The generation cost for hydro is 97 centavos per kilowatt-hour, and Napocor is selling it at P3 per kilowatt-hour, so how could it be losing?” said Antonino.
She said she told President Benigno Aquino the same reasons the two facilities should remain under government control.
Antonino said that when she met Mr. Aquino on April 17 here, she broached to the President the idea of isolating the Agus-Pulangi hydropower complex from the National Power Corp. (Napocor) and running it as a separate government-owned and -controlled corporation. The idea was being supported by Mindanao leaders.
Business and government leaders in Mindanao proposed the creation of a Mindanao Power Co. to operate the two hydropower plants, which supply about 55 percent of Mindanao’s electricity demand.
Antonino said Mr. Aquino was open to the idea but wanted to see proof that the hydropower plants were making money.
She said she already asked Napocor and Power Sector Assets and Liabilities Management (PSALM) to submit their financial statements.
“The President wanted to look into the viability of the proposal,” Antonino said.
She said once the Mindanao group proved that Agus and Pulangi are profitable and can generate income to pay Napocor debts, the next step would be for the government to look into legal remedies, which will include amending the Electric Power Industry Reform Act and enacting new law creating the Mindanao Power Co.
“It is a profitable business. If we privatize it, the company that is going to buy it will be a very lucky one,” Antonino said. Germelina Lacorte with a report from Judy Quiros, Inquirer Mindanao
