Quezon governor urged to collect P1.5 billion from Napocor

LUCENA CITY , Philippines  – A legal and public issues advocacy group has urged Quezon Gov. Raffy Nantes to take immediate action for the collection of P1.5 billion from the National Power Corp. in connection with the realty tax obligation of the Pagbilao Power Plant in Quezon province.

“The Supreme Court has already decided that Napocor should pay P1.5 billion in real property taxes (RPT) to the provincial government of Quezon so it is just proper for Gov. Nantes to act now for the collection of the huge amount to benefit the people of the province,” said lawyer Sonny Pulgar, president of Sentro ng Gabay Legal sa Quezon.

Pulgar, a former Quezon 4th District provincial board member, said Napocor owes Quezon province and the municipality of Pagbilao P500 million in RPT a year, from 1992 to 2000. Napocor assumed the taxes for Mirant Corp., which operates a 700-megawatt coal-fired power plant in Pagbilao.

He said the provincial government must move now to ask the SC for a writ of execution on the SC decision before the matter is overtaken by the heated campaign period for local political candidates on Mar. 26.

“It is clear now that the provincial government of Quezon has gained the upper hand in the long-running legal battle with Napocor that has reached the Supreme Court and it is but proper to ask from it a writ of execution so that the billion peso funds can now be properly used in development programs and projects of the provincial government,” he said, adding that the people of Quezon has long been awaiting the SC decision and resolution of the issue.

Under the energy-conversion agreement, Napocor undertook the obligation to pay all taxes the government would impose on Mirant.

Nantes has expressed optimism on the upcoming settlement by Napocor of its real property tax obligations to the province of Quezon saying that many of his big ticket projects can be funded by the huge amount.

Greggy Romualdez of Team Energy Corp., which succeeded Mirant Corp. in operating the 700-megawatt coal-fired power plant in Pagbilao, said thru text messages that they have talked with Napocor on the issue but nothing has been agreed upon so far. He said he hoped Napocor should now pay but added that it may not have the fund to settle its obligations to the province of Quezon.

Team Energy said it is clear in their energy conversion agreement that the payment of real property taxes is the obligation of Napocor and they are not a party to the case.