Love songs at Front Page on V Day
Love songs at Front Page on V Day
Posted 11:37pm (Mla time) Feb 10, 2005
By Neal Cruz
Inquirer News Service
Editor's Note: Published on page A14 of the February 11, 2005 issue of the Philippine Daily Inquirer
LAST Feb. 2, this column asked questions on the controversial bidding for the Masinloc power plant of National Power Corp. (Napocor). The winning bidder was YNN, whose capitalization has been confirmed to be only P1 million. Its winning bid was P564 million.
This week, my good friend Elpi Cuna, vice president for corporate communications of Manila Electric Co. (Meralco), faxed answers to those questions point by point. In fairness to Meralco, I am quoting those answers.
Elpi denied insinuations that Meralco is close to the bidders for the Masinloc plant, particularly YNN. He said:
"1. Meralco has no business relationship with YNN. You mentioned YNN owner Sunny Sun as a retired Meralco executive and a close associate of our president. For the record, Mr. Sun was never an employee much less an executive of Meralco. His company (Duracom Corp.) used to bid for our annual electric wires needs, representing an established manufacturer, Columbia Wires and Cables. Based on our records, the last award (P1,392,000) to him was in July 2000. In 1993, he was the president of a small genco, Duracom Mobile Power Corp., which signed an agreement with Meralco as a dispatchable independent power producer (IPP). Naturally, Mr. Sun is known to our executives. This company has since been acquired and is now a subsidiary of East Asia Power Resources Corp. Its new president and CEO is Mr. Anthony Shibley."
2. Elpi also stated that there are no ongoing negotiations with YNN insofar as a power supply contract is concerned. "To link Meralco with the government getting a better price had it bid for Masinloc with a long-term power sales agreement, which Meralco refused to enter with Napocor, is unfair and totally false. There is no legal point to stand on and I also do not see the connection between the bidding of government's power plants with Meralco power supply contracts. Our power supply agreements with our suppliers are based solely on the best price we obtain, which will eventually redound to the benefit of our customers. That is our primordial consideration."
"3. You also asked if YNN and Great Pacific would have bid such a higher price if they were not assured of landing a power supply contract with Meralco and [added] that there is no assurance that the public will not be charged a higher generation rate when Meralco and YNN negotiate for a power supply contract.
"For the record, Meralco had absolutely nothing to do with the bidding for Masinloc. Again let me emphasize that to drag Meralco into this controversy is totally unfair ... Let me reiterate for the record that we have no ongoing negotiations with YNN and Great Pacific so to assume that YNN and Great Pacific are going to land a power supply contract with Meralco is totally false.
"4. You said that Meralco should start showing a heart for the consuming public as a public utility company should. You averred that Meralco negotiated a bloated P5 per kilowatt-hour rate with Quezon Power coal plant similar to Masinloc at the time they could buy power from Napocor at only P3 per kilowatt-hour.
"We have time and again stated that comparing the cost of Napocor's rate with Quezon Power or our other IPPs is unfair. The rate of Napocor is 'artificially low.' Further, as we have repeatedly emphasized, our IPPs have not been dispatched at contract levels resulting in a higher rate per kWh. It is the consumer as taxpayer who ultimately pays for the difference between the artificial Napocor rate and the true cost of power. The latest Napocor increase of 98 centavos per kWh nationwide and P1.28 per kWh in the Luzon grid validates this fact. In fact, they have a pending petition to hike their rates again this year. On the other hand, if our IPPs have been dispatched at contract levels, it would have resulted in 42 centavos per kWh savings to Meralco consumers.
"5. Lastly, it is also not true that we have a negotiated power supply contract with a 1200 MW natural gas power project in Bataan.
"It is very unfortunate that some sectors are really intent on sowing disinformation about Meralco. These may be sectors that are intent on seeing the Masinloc privatization fail in order to advance their own interests. It is so sad that they have to resort to this type of propaganda to achieve their ends."
Now that we have read Meralco's side, I would like to ask one last question: There are only two bidders, YNN and First Gas. The latter's bid is P288 million, below the minimum bid price of P380 million. Therefore, there is only one qualified bidder, YNN. If so, is it not a failed bidding?
* * *
This Monday, the Valentine's Day offering of Front Page piano bar is an after-dinner concert of love songs by singing stars Girl Valencia, Marri Nallos, Juan Rodrigo, the telenovela pioneer-turned singer, and the surprise special participation of a pop icon. Front Page is on T.M. Kalaw Street, Manila, opposite the National Library.
Admission is free. Pay only for your drinks.
The painting and sculpture exhibits of Malang and Julie Lluch, respectively, are still ongoing at Samahang Plaridel's art gallery and clubhouse on the third floor. Journalist-members can now play billiards and have free coffee at the clubhouse, listen to fine music, watch TV, write their stories on computers, read the quality newspapers and magazines in Metro Manila, shoot darts, and play chess, cards, liars' dice, dominoes, checkers, scrabble, etc.
* * *
Kapihan Notes: Monday being Valentine's Day when most people will be preoccupied with making their valentines happy, there will be no Kapihan sa Manila (Hotel). The next Kapihan media forum will be on Feb. 21.
Posted 11:37pm (Mla time) Feb 10, 2005
By Neal Cruz
Inquirer News Service
Editor's Note: Published on page A14 of the February 11, 2005 issue of the Philippine Daily Inquirer
LAST Feb. 2, this column asked questions on the controversial bidding for the Masinloc power plant of National Power Corp. (Napocor). The winning bidder was YNN, whose capitalization has been confirmed to be only P1 million. Its winning bid was P564 million.
This week, my good friend Elpi Cuna, vice president for corporate communications of Manila Electric Co. (Meralco), faxed answers to those questions point by point. In fairness to Meralco, I am quoting those answers.
Elpi denied insinuations that Meralco is close to the bidders for the Masinloc plant, particularly YNN. He said:
"1. Meralco has no business relationship with YNN. You mentioned YNN owner Sunny Sun as a retired Meralco executive and a close associate of our president. For the record, Mr. Sun was never an employee much less an executive of Meralco. His company (Duracom Corp.) used to bid for our annual electric wires needs, representing an established manufacturer, Columbia Wires and Cables. Based on our records, the last award (P1,392,000) to him was in July 2000. In 1993, he was the president of a small genco, Duracom Mobile Power Corp., which signed an agreement with Meralco as a dispatchable independent power producer (IPP). Naturally, Mr. Sun is known to our executives. This company has since been acquired and is now a subsidiary of East Asia Power Resources Corp. Its new president and CEO is Mr. Anthony Shibley."
2. Elpi also stated that there are no ongoing negotiations with YNN insofar as a power supply contract is concerned. "To link Meralco with the government getting a better price had it bid for Masinloc with a long-term power sales agreement, which Meralco refused to enter with Napocor, is unfair and totally false. There is no legal point to stand on and I also do not see the connection between the bidding of government's power plants with Meralco power supply contracts. Our power supply agreements with our suppliers are based solely on the best price we obtain, which will eventually redound to the benefit of our customers. That is our primordial consideration."
"3. You also asked if YNN and Great Pacific would have bid such a higher price if they were not assured of landing a power supply contract with Meralco and [added] that there is no assurance that the public will not be charged a higher generation rate when Meralco and YNN negotiate for a power supply contract.
"For the record, Meralco had absolutely nothing to do with the bidding for Masinloc. Again let me emphasize that to drag Meralco into this controversy is totally unfair ... Let me reiterate for the record that we have no ongoing negotiations with YNN and Great Pacific so to assume that YNN and Great Pacific are going to land a power supply contract with Meralco is totally false.
"4. You said that Meralco should start showing a heart for the consuming public as a public utility company should. You averred that Meralco negotiated a bloated P5 per kilowatt-hour rate with Quezon Power coal plant similar to Masinloc at the time they could buy power from Napocor at only P3 per kilowatt-hour.
"We have time and again stated that comparing the cost of Napocor's rate with Quezon Power or our other IPPs is unfair. The rate of Napocor is 'artificially low.' Further, as we have repeatedly emphasized, our IPPs have not been dispatched at contract levels resulting in a higher rate per kWh. It is the consumer as taxpayer who ultimately pays for the difference between the artificial Napocor rate and the true cost of power. The latest Napocor increase of 98 centavos per kWh nationwide and P1.28 per kWh in the Luzon grid validates this fact. In fact, they have a pending petition to hike their rates again this year. On the other hand, if our IPPs have been dispatched at contract levels, it would have resulted in 42 centavos per kWh savings to Meralco consumers.
"5. Lastly, it is also not true that we have a negotiated power supply contract with a 1200 MW natural gas power project in Bataan.
"It is very unfortunate that some sectors are really intent on sowing disinformation about Meralco. These may be sectors that are intent on seeing the Masinloc privatization fail in order to advance their own interests. It is so sad that they have to resort to this type of propaganda to achieve their ends."
Now that we have read Meralco's side, I would like to ask one last question: There are only two bidders, YNN and First Gas. The latter's bid is P288 million, below the minimum bid price of P380 million. Therefore, there is only one qualified bidder, YNN. If so, is it not a failed bidding?
* * *
This Monday, the Valentine's Day offering of Front Page piano bar is an after-dinner concert of love songs by singing stars Girl Valencia, Marri Nallos, Juan Rodrigo, the telenovela pioneer-turned singer, and the surprise special participation of a pop icon. Front Page is on T.M. Kalaw Street, Manila, opposite the National Library.
Admission is free. Pay only for your drinks.
The painting and sculpture exhibits of Malang and Julie Lluch, respectively, are still ongoing at Samahang Plaridel's art gallery and clubhouse on the third floor. Journalist-members can now play billiards and have free coffee at the clubhouse, listen to fine music, watch TV, write their stories on computers, read the quality newspapers and magazines in Metro Manila, shoot darts, and play chess, cards, liars' dice, dominoes, checkers, scrabble, etc.
* * *
Kapihan Notes: Monday being Valentine's Day when most people will be preoccupied with making their valentines happy, there will be no Kapihan sa Manila (Hotel). The next Kapihan media forum will be on Feb. 21.
posted by Dante at 12:00 AM
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