Kal­timex will­ing to com­ply with Asin con­tract

Sun.Star Baguio - - TOPSTORIES -

THE WIN­NING con­trac­tor of the re­ha­bil­i­ta­tion and op­er­a­tion of the city­owned Asin mini-hy­dro power plants as­sured city of­fi­cials the com­pany will com­ply with its con­trac­tual obli­ga­tions pur­suant to a signed mem­o­ran­dum of agree­ment.

In his let­ter to Mayor Mauri­cio Do­mo­gan, Ro­drigo Cabr­era, se­nior con­sul­tant of Kal­timex En­ergy Philip­pines, said one of the in­di­ca­tors of their com­mit­ment to com­ply with their con­trac­tual obli­ga­tions is the re­cent sub­mis­sion of their 6-month ac­tion plan which is now a work in progress.

How­ever, the com­pany ex­plained on the is­sue of the rental, par­tic­u­larly for the first year, he pointed that the rental for the first year should not be due un­til and af­ter the pre­scribed con­di­tions shall have been met.

Among the con­di­tions re­quested by the com­pany in­clude the com­plete trans­fer of the Asin hy­dro plant to Kal­timex and that all the per­mits, water rights, right of way and such other req­ui­sites shall have been ob­tained and se­cured from both the na­tional govern­ment and the lo­cal gov­ern­ments con­cerned and that the fa­cil­i­ties are fully op­er­a­tional.

Kal­timex al­ready co­or­di­nated with the City Mayor’s Of­fice for a joint in­spec­tion of all the fa­cil­i­ties and even­tual trans­fer of pos­ses­sion of the city-owned power plants to the op­er­a­tor.

Cabr­era ex­plained the joint in­spec­tion though re­mains a work in progress pend­ing com­ple­tion of due dili­gence equip­ment test­ing at the site which the com­pany pro­jected to hap­pen only by late Septem­ber given a min­i­mum two weeks process from mo­bi­liza­tion, hence, pos­ses­sion of the fa­cil­i­ties at site has not also been ef­fected.

He added the com­pany has also been work­ing on the is­suance of the re­quired per­mits, par­tic­u­larly from the

en­ergy de­part­ment as the op­er­at­ing con­tract was granted to the Aboitiz-owned Hy­dro­elec­tric De­vel­op­ment Cor­po­ra­tion (HEDCOR) which is still live in the eyes of the said de­part­ment.

The Kal­timex of­fi­cials claimed when the is­sue was clar­i­fied with the re­new­able en­ergy man­age­ment bureau mid­dle part of this year, it was stated the de­vel­oper has no stand­ing yet vis-à-vis the en­ergy de­part­ment while the HEDCOR mat­ter con­tin­ues to re­main un­re­solved and to date, the en­ergy de­part­ment has not ruled upon the can­cel­la­tion of the HEDCOR con­tract in favour of Baguio City which in turn shall turnover the same to Ka­timex.

Cabr­era as­sured the lo­cal chief ex­ec­u­tive the com­pany will con­tinue to fol­low up the is­suance of the re­quired per­mits in the name of Kal­timex con­sid­er­ing that the de­vel­oper can­not op­er­ate the fa­cil­i­ties with­out the said per­mits.

He stip­u­lated the first year rental was based on the as­sump­tion that the hy­dro plant fa­cil­i­ties were fully op­er­a­tional six months af­ter the con­fir­ma­tion of the agree­ment by the coun­cil but un­for­tu­nately, 2 years had lapsed from the time of the sign­ing of the agree­ment to its ac­tual con­fir­ma­tion, thus, the com­pany has yet to con­duct a joint in­spec­tion whether the fa­cil­i­ties are still func­tional or not.

Kal­timex will en­gage the ser­vices of an in­de­pen­dent con­trac­tor to test the plant fa­cil­i­ties and their func­tion­al­ity and should the fa­cil­ity be proven func­tional, the com­pany shall com­mence full oper­a­tions. Dex­ter See/Baguio City PIO

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