"We are here to stay at least for the assets that are already here," CalEnergy vice president Robert G. Eugenio said.
Eugenio, however, admitted that they are not looking for future investment in the country’s power sector, particularly in the privatization of the National Power Corp. (Napocor). "At present, we are not eyeing any particular project," he said.
CalEnergy is now under the investigation of the Senate Blue Ribbon committee for its $700 million Casecnan Multi-Purpose project.
Aside from this, it is also in the midst of arbitration processes with government agencies/corporations.
In particular, CalEnergy is negotiating with the National Irrigation Authority for a tax refund issue amounting to over $52 million.
The US-based power firm is also talking with the officials of the PNOC-Energy Development Corp. for the so-called required minimum power for two of CalEnergy-run geothermal power plants in Leyte, Malitbog and Mahanagdong.
The Casecnan project is being subjected to full scrutiny by an inter-agency IPP (independent power producers) Review Committee as one of the "onerous" contracts entered into during the Ramos administration.
Eugenio said the review of the IPP contract has good intentions but is sending "mixed signal to the foreign investment community". "On one side, the government is trying to win investors to look at the privatization of Napocor on the other side, they are somewhat turning off investors by this move (to review the contracts).
"The principle is okay. But we need to know what the numbers are before making any decision. We acknowledge that the ultimate objective of the review is to lower the power rate and ease the cost pressure of the government.