| By Donnabelle L. Gatdula (The Philippine Star) Updated January 19, 2011 12:00 AM |
MANILA, Philippines - Potential investors in the energy sector are seriously reconsidering plans to invest in the Philippines as the Quezon provincial government prepares to auction off the 700-megawatt Pagbilao power station, an industry source.
“Equal protection and continuity of policies are some of the things that investors look for. We cannot attract quality investments if policies are changed in the mid-stream,” the source, who requested anonymity, pointed out.
The Quezon provincial government expressed plans to auction off the Pagbilao power plant after winning a court case against the National Power Corp. (Napocor) regarding the payment of real property taxes on the plant and its equipment.
Unable to collect from Napocor, the Quezon government is asking plant operator TeaM Energy to settle the amount under threat of auctioning off the facility.
But in its energy conversion agreement with Napocor, it is clearly stated that real property taxes are not the obligation of TeaM Energy.
“Because of this whole fiasco and planned auction of the Pagbilao generating plant, big ticket investments, particularly those that the DOE is banking on to stave off a potential power crisis in the near term, may be in danger,” the source pointed out.
The administration of President Aquino recently bared expressions of interest by potential investors from the United States and Japan to invest in power projects amounting to over $2 billion in the next few years.
The source said the province’s move to insist on collecting from a private company a debt owed by Napocor sends the wrong message to investors and puts into serious question the credibility of the country as a good investment destination.
“Equal protection and continuity of policies are some of the things that investors look for. We cannot attract quality investments if policies are changed in the mid-stream,” the source, who requested anonymity, pointed out.
The Quezon provincial government expressed plans to auction off the Pagbilao power plant after winning a court case against the National Power Corp. (Napocor) regarding the payment of real property taxes on the plant and its equipment.
Unable to collect from Napocor, the Quezon government is asking plant operator TeaM Energy to settle the amount under threat of auctioning off the facility.
But in its energy conversion agreement with Napocor, it is clearly stated that real property taxes are not the obligation of TeaM Energy.
“Because of this whole fiasco and planned auction of the Pagbilao generating plant, big ticket investments, particularly those that the DOE is banking on to stave off a potential power crisis in the near term, may be in danger,” the source pointed out.
The administration of President Aquino recently bared expressions of interest by potential investors from the United States and Japan to invest in power projects amounting to over $2 billion in the next few years.
The source said the province’s move to insist on collecting from a private company a debt owed by Napocor sends the wrong message to investors and puts into serious question the credibility of the country as a good investment destination.
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