Wednesday, September 5, 2018

Zamcelco awards investor-management deal to JV


Published

Zamboanga City Electric Cooperative, Inc. (Zamcelco) has finally awarded the investor–management contract of the Zamboanga City’s electric distribution to the joint venture of Crowninvestments Holdings, Inc. and Desco, Inc.
The joint venture clinched the deal during the fourth and final bidding to the tune of P2.5-billion with both Crowninvestments and Desco confident they can help revive the ailing electric cooperative and manage it in the most professional manner.
Under the deal, the joint venture will manage its operations for 25 years. The joint venture said it was convinced that its bid can help Zamcelo pay all its existing obligations and upgrade the facilities to avoid power interruptions.
The joint bid of Desco and Crowninvesments Holdings was almost five times higher than the earlier bids of Comstech-Meralco JV which withdrew from the contract with Zamcelco earlier this year.
The electric cooperative is saddled with over P1.5-B debt to its power suppliers − PSALM, San Miguel, Alsons and other.
The first and second biddings were declared failures due to no parties showing interests in bidding at a floor price of P800 million. The third bidding had a different story when Aboitiz Power Ventures withdrew from the bidding in December 2017, leaving Meralco-Comstech to enter into a negotiated agreement with ZAMCELCO.
At a negotiated amount of P550 million to be pumped into ZAMCELCO, the Meralco-Comstech JV likewise withdrew from the IMC concession that paved the way for a fourth bidding.

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