In the first place, as stated in the Electric Power Industry Reform Act (EPIRA) of 2001, government can absorb only up to P200 billion of Napocor’s debts. Why would the government – already running in deep red financially – make such claim? There are those who believe, for instance, that the recent deterioration of the peso is not really a FPJ-induced phenomenon. There is underlying concern about the huge and seemingly uncontrolled government deficit spending.
But perhaps, there are preparations already underway to reopen and amend certain restrictive provisions of the EPIRA law with the objective of making the privatization of Napocor more palatable to buyers. With Sonny Osmeña having lost in the last elections, such move may now be more easily introduced. But will come-backing Enrile also say this time, "utang mo, sagot namin"?
"We just have to bite the bullet. These debts have accumulated through several administrations, and we can neither wish our debts away nor turn our back (on) them without risking a collapse in our credibility," said Presidential Spokesman Ignacio Bunye. "The neglect of the past cannot be cured by breeding more crises, uncertainties and hardships."
He couldn’t have said it any better than this.
This government has been left with too little choice but to "bite the bullet," so to speak. Unfortunately, it is not because of its own doing. It is simply paying the price for the mistakes committed, particularly past governments‚ failures to pour funds in an industry as vital as the power sector.
For one, while we persecute the now much ballyhooed independent power producers (IPPs), they were our only hope during those blackout years. Napocor, without massive fund infusion by government, could certainly not have been able to provide continuous electricity.
Government has been very slow in putting funds to the financially strapped Napocor. Of the actual P23 billion infused equity in the power company, P14 billion was made only during the Ramos administration out of the Oil Price Stabilization Fund (OPSF) and the Philippine Gaming and Amusement Corp. (Pagcor).
Maturing obligations have now run to hundred of billions especially after the peso’s sharp fall versus the dollar. Payables to IPPs have also started to mount, with or without the renegotiations or threats of possible international arbitrations at hand.
Worse than that is the fact that the country would soon again run out of power. And this time, there seems to be no takers. The investors that used to come in droves are no longer interested in bringing in funds for fear of getting a rebuke from the courts. The possibility of being a whipping boy to gain political points is another abhorring thought for them.
During the 1990 power crisis, they came in with $5 billion in their pockets and built in a year or so power generation facilities which on normal occasion would take three to five years to construct. I don’t think we can expect a repeat performance this time.
So far, what we hear from the energy department are simply talks of companies interested or looking into the deal. And this has been the same story since more than a year after government placed Transco on the auction block. Interest in the sale of Napocor’s generation assets is similarly disappointing.
Let’s pray that things will really start moving. Until then, the reality that confronts us is another power crisis and the near bankruptcy of the government from the heavy burden of a badly-managed public corporation.
In the face of a mounting budget deficit, the government needs to seriously spruce up its collection efforts. The BIR – together with the customs bureau – faces some tough decisions as it attempts to professionalize its ranks through reorganization and computerization. But then, fundamental measures still need to be undertaken. Watch it.
Medical malpractice is a bitter pill for those who have had the misfortune to experience it. Victims of various cases of gross negligence are clamoring for a law that will penalize those responsible for harming rather than curing patients. Medical practitioners are up in arms and have successfully blocked the move in Congress saying that a law on medical malpractice will only mean more cost to patients, as doctors will be more concerned to get insurance cover than curing the patient.
Join us break barriers with Dr. Sanchez and hear his views on high surgery cost and medical malpractices and answers to questions about local anesthesia, unsafe practices in reconstructive and cosmetic surgery, including nose lifts, nose fixing and the highly popular (and controversial) liposuction procedures.
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