By Myrna Velasco
A revenue sharing scheme that will enjoin Korea Water Resources Corporation (K-Water) to pay $40 million (approximately P1.8 billion) annually for the electricity output from Angat plant auxiliary units 4 and 5 has been proposed by the Metropolitan Waterworks and Sewerage System.
Energy Secretary Carlos Jericho L. Petilla confirmed to media that MWSS had already given its counter-proposal to K-Water on “the revenue sharing scheme” to cover the 28MW auxiliary units of the Angat hydropower complex.
The energy chief has not specified the amount, but sources indicated it was at “the level of $40 million annually.” K-Water is reportedly studying the proposal of MWSS before it accedes to next level of discussions on the matter. Petilla emphasized that MWSS informed him about the proposal, and his cautionary word to them was “just to make sure that (the proposed revenue-sharing arrangement) it is legal.”
One major issue being raised against that proposition is the lack of bidding, which will be a violation of the standard procurement processes prescribed for government entities like MWSS.
The initial proposal sounded off by MWSS, according to Petilla, will be to subject the $40 million revenue sharing pact to a ‘Swiss challenge’ by other interested investors in the Angat auxiliary units.
The privatization of the two auxiliary units is being undertaken separately by MWSS and the Public-Private Partnership (PPP) Center via a rehabilitate-operate-maintain (ROM) arrangement.
However, K-Water raised some issues against MWSS’s mandate on power generation as well as on the assignment of a portion of the 58 cubic meters per second (58) of water that had been allocated for generation of electricity. source
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