Omnibus Power Bill spares 2 Mindanao plants

Two major generating plants of the National Power Corp. (Napocor) in Mindanao will remain government property as Congress excluded them from privatization under the controversial Omnibus Power Bill.

Agusan Rep. Roan Libarios said a provision of the measure exempted the Agus and Pulangui facilities from partial or full privatization.

Libarios said the proviso was a last-minute insertion in House Bill (HB) 8457 that seeks to deregulate the power industry in the country.

Sen. John Osmeña expressed agreement to the exemption of the two hydro-electric power plants which provide about 80 percent of Mindanao's electricity requirement, saying the Senate committee on energy which he heads, may also defer privatization of Napocor's geothermal plants.

The measure was approved by the House following a marathon session last April 12.

The passage of HB 8457 was marred by controversy after two party-list members said those who favored the bill received huge amounts of money.

"It was a last-minute insertion unanimously supported by all congressmen from Mindanao," Libarios said.

The provision stated that the "Agus and Pulangui complexes shall be excluded from the generating companies that will be initially privatized. Their assets, liabilities and personnel shall be completely transferred to two separate subsidiaries to be established for the purpose of maintaining and operating said complexes."

Libarios said without the exemption clause, Mindanao lawmakers would have rejected the bill.

"With the clause in place, Mindanao lawmakers posed no objection to the approval of the bill on final reading," he said.

Three senators from Mindanao--Robert Barbers, Minority Leader Teofisto Guingona Jr. and Aquilino Pimentel Jr.--have also signified their conformity with the final version of the bill.

Privatization of the Agus and Pulangui facilities was left to the discretion of the subsidiaries in consultation with the local government officials and congressmen from Mindanao, subject to the approval of the President.

Osmeña said privatization of Napocor-run geothermal plants with mixed private-public ownership will be delayed, saying it would be difficult to privatize one part and leave the other part in government hands.

"What we will be privatizing are all the thermal plants of Napocor that are mostly in Luzon--the Bataan thermal plant, the Sucat coal-fired plant, the Tegen power plant and the Masinloc coal-fired plant," Osmeña said.

House Majority Leader Eduardo Gullas said the proposed law will require all power service providers to go public to boost the local capital market.

All companies engaged in the generation, transmission and distribution of electricity, or their holding firms must offer and sell to the public at least 20 percent of their equity within five years.

"This will go a long way in building up the stock market. Market capitalization and liquidity will surely improve," Gullas said.

Of the over 200 firms currently listed in the Philippine Stock Exchange, only three are directly involved in power generation and distribution.