TransCo plans arbitration talks with contractor

The National Transmission Corp. (TransCo) and its long-time contractor AlphaOmega Integrated Corp. are planning to enter into arbitration to resolve the issues on the takeover of five projects, a TransCo official said.

TransCo vice president and legal counsel Noel de Leon told reporters that they plan to solve the problem with the contractor "by way of arbitration".

"We recognize the contribution of AlphaOmega to the projects of the government, as bid out by our corporation. We are now exploring the possibility of resolving issues that AlphaOmega may raise to arbitration," De Leon said.

For his part, AlphaOmega president and general manager Edgar Herrera concurred entering into arbitration and finish the proceedings within four to six months.

Herrera argued that TransCo was "remiss" in its obligation to resolve right-of-way (ROW) issues and furnish materials on time which caused the undue suspension and delay of the five projects.

Contrary to TransCo’s claim that it would take over six projects, Herrera said they have turned over one project (Makban substation) due to unresolved ROW problems.

TransCo reported earlier that it is taking over from AlphaOmega the remaining construction works for six power transmission facilities worth a combined P93.5 million, although AlphaOmega claims the remaining contracts amount to only P62 million.

TransCo has served separate "notices of take-over" to the contractor early this year for three projects which were all supposed to have been completed in December 2005, inclusive of contract time extension. These are the: 100-megavolt ampere Quiot (Pardo) substation construction project for the Cebu grid; Bacolod substation expansion project for the Negros-Panay grid; and the New Bunawan switching station project for the Southeastern Mindanao transmission system.

TransCo is also set to issue notices of take-over for three other projects where the contractor has no more on-site workforce. These are the New Makban substation project and Makban switchyard-Calamba Tower 50 project, both components of the Batangas transmission reinforcement project intended to reinforce the transmission system in Southern Luzon and the Cabanatuan substation expansion project which will serve the growing demand of Central Luzon customers.