Solon: Probe GMA’s power deal with US IPP

BAYOMBONG, Nueva Vizcaya - The minority in the House of Representatives demanded yesterday that the terms of the $200 million investment deal President Arroyo recently sealed with an American power firm be submitted to Congress for scrutiny.

The deal, entered into between the Philippine government and Sunpower Corp. to build a 150-megawatt solar energy generated power plant in the country, was the first independent power producer (IPP) deal finalized under the Arroyo administration.

It was signed only last week during the President’s working visit to the US.

Malacañang said that the solar-generated power plant will be the first of its kind in the country and can create about 1,400 jobs when it becomes fully operational.

House Minority Leader Carlos Padilla, however, expressed fears that the contract "could be another onerous deal in favor of the multinational company."

At present, he said, the amount of the excess supply power generated by IPPs is passed on to consumers through the power purchase adjustment (PPA), which the opposition wants abolished.

A few months back, the President has ordered a review of the 35 existing IPP contracts for alleged anomalous deals, majority of which were signed during the Ramos administration.

"We do not want this IPP to be another monster for us wherein we are made to pay high electricity rates and unwarranted PPAs," he explained.

Padilla, however, clarified that the opposition is not making any conclusion about the IPP deal and wants it thoroughly discussed in Congress to find out its implications to the public.

Under the contract, Sunpower Corp., which will become the first solar manufacturer to operate in the Philippines, will initially build a 25-MW solar-powered electric generating plant on the first year of operations, gradually increasing its size and output until it reaches the full capacity of 150-MW in four year’s time.

Padilla explained that by giving Congress the courtesy to review the deal, every member (in the House of Reperesentatives) will be able to analyze whether this is inimical to the interest of the Filipino people.

"That’s the reason why we want the Executive branch to submit a report to Congress," he said."As representatives of the people, we want to be assured that the terms would not only favor the multinational firm. Also, we want it clear that (the deal) is not a 2004 fund raising gimmick of the administration."