Perez ready to face Osmeña’s charges involving CBK project

Energy Secretary Vincent S. Perez said he is ready to face any charges that may be filed by Sen. Sergio Osmeña in connection with alleged anomalies in the Caliraya-Botocan-Kalayaan (CBK) project.

In a statement, Perez said this will be an opportune time for energy officials to clarify all issues involved in the controversial project.

"The CBK contract has gone through several hearings in Congress over the past years. Charges to be filed at the Office of the Ombudsman should further shed light on the issues and reveal whatever interest various parties including the private sector have on this project," Perez said.

While welcoming the planned move of Osmeña, the energy chief noted that the solon might have based his latest move on assumptions that are yet to be substantiated by the report that will be submitted by the New Zealand-based Meritec Ltd.

Meritec, he said, was commissioned to evaluate the contract between the National Power Corp. (Napocor) and CBK Power Corp. for the rehabilitation and expansion of the CBK power plant complex.

Osmeña has accused energy officials, as well as Finance Secretary Jose Isidro Camacho, of entering into alleged overpriced contracts particularly on the rehabilitation of the CBK hydroelectric power plant.

"Secretary Camacho and I were nowhere near Napocor when the CBK BROT (build-rehabilitate-operate-transfer) was signed in 1999, nor when the supplemental agreement was signed in 2001," Perez said.

On the contrary, he said, it was the Department of Energy (DOE) that initiated the Meritec project audit on CBK to determine whether there is a basis for the payment of rehabilitation work undertaken pursuant to the contract consistent with the government’s policy to ensure transparency and that all contracts are aboveboard.

"As far as we can determine, we see no substantive reasons for continuing to withhold the invoices (for capital recovery fee and O & M fee) due to the BROT contractor on the basis of non-completion of Kalayaan Unit 1. Accordingly, we suggest that payment be made as soon as possible to avoid the default action currently pending," Perez said, quoting the Meritec report.

The Meritec report, he said, also observed that "there were some administrative procedures not complied with the operator, these were minor enough not to warrant withdrawal of payments and put at risk the country’s credit rating being declared in default."