Exec: Less costly if governor doesn't sell Agus-Pulangi

By Antonio L. Colina IV
Wednesday, March 14, 2012

THE Association of Mindanao Rural Electric Cooperatives (Amreco) reiterated its stance against the privatization of Agus and Pulangi hydro-power plants.

"Dili nato ibaligya ang duha ka planta (We will not sell the two hydro-power plants)," Amreco president Sergio Dagooc said in opposition to the government's plan of privatizing the two hydro-power plants.

In Tuesday's press conference on Mindanao's power situation, Dagooc said the hydro-power plants are "full-depreciated" and the installation and acquisition costs were already paid over the years they used the plants.

Dagooc said it will be less costly if the ownership remains with the government because they will only be compelled to pay for the operational and maintenance costs.

"Ipabid-out na man pud nila kung kinsa ang pinakamahal mopalit (They will sell it to highest bidder will own them)," he said, adding that if the privatization will push through, the acquisition cost has to be recovered plus the rehabilitation cost, if ever.

In comparison, he said, if the power plants are by now fully depreciated, then the expense needed if government keeps ownership is but cost of repairs.

He added that the government has been operating them for more than 20 years already and that they are capable of maintaining them.

He also scored on the government for not giving any budget allocation for the rehabilitation of the power plants because they wanted them to be sold to private firms.

"Any amount that will be spent by the government in rehabilitating the hydro-power plants (Agus and Pulangi) to bring back their generating capacity can be recovered through the generation cost," he said.

The generation cost, however, will still be lesser than if it is sold.

Published in the Sun.Star Davao newspaper on March 15, 2012.