ERC seeks P120-M NDC loan

The Energy Regulatory Commission (ERC) is seeking a P120-million mortgage loan from the state-owned National Development Co. (NDC) to fund the purchase of an office building in Pasig City.

"We (ERC and NDC) have already agreed in principle. But we are still negotiating on the terms of the loan," ERC chairman Manuel Sanchez said.

Sanchez said the ERC is also talking with some private financing groups like the AIG group in case the talks with NDC will not work out.

The seven-story four-year old building, which the ERC intends to buy, is owned by RIMA group.

ERC is paying P1.2 million every month for the five floors it is currently occupying at the Pacific Center in Ortigas Center.

The ERC chief said instead of paying a big lease every month, it is better to just pay their own building. He said the loan will be paid by the ERC and will not be carrying any guarantee from the National Government.

"Our employees have been squeezing themselves in a very small room for a long time now. We need to have more space," he said.

Since his appointment, Sanchez has been advocating for ERC to be independent particularly for the commission to have fiscal autonomy. He believes ERC could not function well if it will not have fiscal independence.

Sanchez has proposed to collect a fee from either the consumers or the distribution utilities to sustain the commission’s operations.