House to probe Mindoro power deal
CALAPAN CITY, Oriental Mindoro: The three representatives of the island of Mindoro passed resolutions before the House of Representatives (HoR) seeking an inquiry in aid of legislation on the competitive selection process of the local electric cooperative here and another asking the Energy department to include in the agency’s priority program the interconnection through the submarine cable of the Semirara Island to Mindoro to provide cheaper and reliable power source not only in the main island but also in off-grid areas.
First District Rep. Arnan Panaligan, Second District Rep. Alfonso Umali Jr., and Occidental Mindoro Lone District Rep. Leody Tarriela introduced House Resolution 788 and 789 before Congress, which were received by the Bills and Index Service of the HoR on February 16. A copy was furnished by Alliance of Stakeholders for Sufficient and Affordable Power chairman Rodolfo Valencia to The Manila Times.
Resolution 788 directs the House Committee on Energy to “conduct an inquiry in aid of legislation the competitive selection process of the Oriental Mindoro Electric Cooperative (Ormeco) for 41 megawatts (MW) guaranteed dependable capacity power supply agreement to address the need for sufficient and affordable electric power supply for the entire province of Oriental Mindoro to hasten the agro-industrialization, tourism, and other industries that would spur socioeconomic development of the island provinces of Mindoro and the general welfare of the consumers.”
The resolution cited the alleged bias of the Ormeco management against an independent power producer that was previously disqualified in the just concluded bidding process of the cooperative on Jan. 10, 2023. The cooperative allowed the reopening of the bids on Jan. 23, 2023, which the resolution said is contrary to the bidding rules of the cooperative and Department of Energy circulars on biddings in the power industry.
The resolution further asserts that Terra Movers, one of the disqualified bidders allegedly favored by the cooperative, is principally engaged in the business of contracting dredging, reclamations, supply, and materials for mining and quarrying, and only secured its certificate of amendment in its articles of incorporation to include power generation among its business purposes.
“In as much as, said the corporation did not admittedly have the technical qualifications, it reasons that it anyway has an unnamed technical partner as the power supplier. This is precarious as the bid is in the name of Terra Movers while the unnamed technical partner, upon whom it relies as power supplier, is not vetted by Third Party Bids and Awards Committee of Ormeco,” the resolution said.
In a message on Friday, Panaligan said that they are now waiting for the reading of the resolution in their next session on Monday and this would be brought to the Committee on Energy headed by Marinduque Rep. Lord Allan Velasco.
The Times tried to get the reaction of the Ormeco management but they have not replied as of press time. But in previous interviews, general manager Engr. Humphrey Dolor said that they welcome all investigations into the power situation of the province as these could help in the resolution of the power problem of the consumers.
House Resolution 789 seeks the interconnection from Semirara Island via submarine cable to Mindoro Island citing the resolution of the Sangguniang Panlalawigan (Provincial Board) headed by then vice-governor now Gov. Humerlito Dolor supporting the planned interconnection. It also cited the approval of then Energy Secretary Al Cusi for the Semirara Mining and Power Corp. to proceed with its construction of a 50-MW coal-fired plant in Semirara that can become Mindoro’s baseload power.