Palawan power shutdown looms

Manila Standard Today
Puerto Princesa City—-A key official has called on President Benigno Aquino III to help sustain the travel sector’s momentum in Palawan by settling the P240-million debt of the National Power Corp. to independent power producers amid fears of a looming shutdown.


Rebecca Labit, assistant city administrator and city tourism officer, said any delay may reverse hard-earned gains.


“The city and the entire Palawan would lose all the tourists coming in droves if President Aquino fails to provide immediate financial assistance and settle the obligations of Napocor to the IPPs,” she said.


The Puerto Princesa City Power Commission has unanimously approved a resolution last Nov. 18 to seek President Aquino’s assistance to pay Palawan Power Generation Inc. and Delta P P120 million each, to settle subsidy billings for May, June, August and September 2011.


The commission said PPGI had warned Napocor president Froilan Tampinco last Nov. 2 of a power crisis with present finances allowing “two weeks supply of fuel for power generation in the city and the province, after which these areas will experience power shedding and eventually suffer frequent long power outages unless they will be provided with the much needed assistance.”


The PPC resolution cited a quick solution if President Aquino agreed to give Puerto Princesa Mayor Edward Hagedorn the city’s share of the revenues from the Malampaya Natural Gas Project.


The Palawan Chamber of Commerce and Industry Inc. alongside Palawan Filipino-Chinese Chamber of Commerce and Industry Inc. expressed support to the Hagedorn remedy.


“It is striking that Palawan, which provides the natural gas to produce one-third of Luzon’s electric energy needs, finds itself a supplicant for a mandated subsidy of the national government. Ironically, the current shortfall would be an ideal and intended application of royalties from the Malampaya Fund,” chamber officials said.