By
BusinessMirror - December 3, 2019 By
Lenie Lectura & Butch Fernandez
THE Department of
Energy (DOE) on Monday said it is pushing for an audit of the transmission
grid, as Senate Energy panel chief, Sen. Sherwin Gatchalian, targeted the
holding of an inquiry by mid-December, amid national security questions
surrounding the National Grid Corp. of the Philippines (NGCP) and its
partner State Grid Corp. of China (SGCC).
Only after the audit
can the Philippine government put to rest issues on such national security
concerns, the DOE said.
“The threat that people
are talking about, to put a closure to that, and for government to put up
measures that we need to protect the republic and the people, let [inspection]
be done so that all our worries can be gone. That can only be done by audit,
inspection. If there is any perceived threat—real or imaginary—the government
must be ready for any eventuality and we can do that only if NGCP cooperates,”
said Energy Secretary Alfonso Cusi at a news conference Monday morning.
During the press
conference, DOE and National Transmission Corp. (TransCo) officials said they
would discuss among themselves how to go about inspecting NGCP’s facilities.
Later in the day, newly
appointed DOE Undersecretary Emmanuel Juaneza went to NGCP’s office in Quezon
City. He reportedly asked NGCP for feedback, by Tuesday, with regards to a
supposed audit agreement between NGCP and the government.
Asked for comment, NGCP
Spokesman Atty. Cynthia Alabanza said, “Usec. Juaneza handed over a letter,
which NGCP has yet to review as against the concession agreement. We invited
him to view our systems operations, but he politely declined, saying that he
does not want to disturb our operations especially during the impending
landfall of Typhoon Tisoy.”
Juaneza, who was
introduced by Cusi on Monday, has been tasked “to coordinate with
TransCo for the inspection of the facilities that we need to do to make sure
that the interest of the republic is protected.”
“He is my
representative in TransCo board. He is a mechanical engineer. He has
background in power plants here and abroad,” said Cusi.
For his part, Juaneza
said he has over 30 years of experience in the power industry here and abroad.
He used to be the plant manager of a geothermal power facility in Mindanao from
1996 to 2001. From then on, he said he worked “in different parts of the
world.”
40-percent stake
The SGCC has a
40-percent stake in NGCP, which took over the management and operation of the
Philippines’s power grid since 2009. TransCo still owns the assets.
China’s foreign
ministry spokesman said last week that apprehensions that Beijing, through SGCC,
could sabotage Philippine interests by remotely cutting off its power system
were groundless. Like other state-owned firms in China, SGCC always strives to
serve its business clients in excellent fashion, the ministry added.
In a statement last
week, DOE said: “Given that there are aspects in the existing Franchise
Agreement with the NGCP that seem inimical to the best interests of the
national government and, more importantly, the Filipino people, both the DOE
and TransCo continue to call for, and are fully supportive of the Senate’s
interest to take a closer look at the administrative, operational, and
procedural structures existing within the NGCP.
“We consider the Senate
hearings as a positive development toward the long overdue and much needed audit
of NGCP, as well as the comprehensive reexamination of the Franchise Agreement,
which is part of the Presidential directive to review all government contracts
that appear to be onerous. These steps would facilitate the introduction of all
necessary amendments to uphold our national security and the welfare of our
citizens and consumers.”
Senate inquiry
The chairman
of Senate Committee on Energy left the door open to an inquiry in aid of
crafting remedial legislation to address possible gaps in the existing NGCP
deal.
Sen. Sherwin Gatchalian
indicated Monday senators are keen to hear details of the China power
deal.
Lawmakers, he said,
need to assess its implications on national interest, as well as determine the
need for legislative action. “It’s normal to be paranoid in discussions of
national security. We need to look at all possibilities because anything can
happen in the future. We can say now that such a thing is impossible, or
that it won’t be done to us, but we cannot say what happens next year, 10 years
from now, or 20 years from now,” Gatchalian said in a mix of English and
Filipino.
Reminded that the
Chinese government had conveyed its assurance to President Duterte that Beijing
will not sabotage the power grid, Gatchalian said that while the assurance was
good, he will listen primarily to only two people: “first, the national
security adviser because this is a national security concern…and, second, the
DOE secretary because this involves power and electricity for day-to-day
operations.”
He noted that Duterte
listens to the National Security Adviser, Hermogenes Esperon, and the DOE
chief.
While attending a
recent conference of electrical engineers, Gatchalian said he spoke on the
sidelines to someone who said the technology to control the transmission system
exists. The imperative, he said, is to make sure such is not used as a threat
against the country.
While China owns 40
percent of the NGCP, it’s the local companies that exercise majority
control, and “hanggang
ownership lang ang state
grid ng China [the
state grid of China is limited to ownership].”
This means, the senator
added, “they should not have anything to do with day-to-day operations. They
can give advice. But they cannot touch the system.”
Thus, he said, what is
needed is not just a “management audit, or just a financial and legal audit but
a technical audit.”
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