BAGUIO CITY – A Makati-based investment company is setting its sights to partner with the Benguet Electric Cooperative (BENECO) for the implementation of an Investment Management Contract (IMC) for the rehabilitation and upgrading of the Zamboanga City Electric Cooperative (ZAMCELCO).
In the letter to BENECO general manager Gerardo P. Verzosa, Crown Investments Holdings Inc. stated that the company has chosen BENECO to be its technical partner for the bidding of the IMC for ZAMCELCO considering that it has already the required program for the project. The company is reportedly owned by businessman Mikey Romero and represented by Marvee Espejo.
“We approach your company for a synergy of our strengths for the bid for ZAMCELCO IMC. We believe that BENECO’s experience and excellent track record as a premier distribution utility in the Cordillera Administrative Region will make our partnership formidable. We likewise believe that BENECO’s technological know-how in distribution utility facilities will greatly contribute in upgrading ZAMCELCO,” Espejo stated.
As Crown Investments and Holdings partner in the IMC, BENECO will be tasked to nominate a member for the management team to advise on the IMC; review and oversee the implementation of a development program for ZAMCELCO; provide advice on how to meet and improve collection efficiency, systems loss targets, system reliability and system power factor as set in the IMC and relevant regulations and provide advice on meeting and maintaining key performance indicators set by NEA and rules of setting electric cooperative wheeling rates of the ERC for the term of the IMC.
Espejo clarified that BENECO’s participation in the bid for ZAMCELCO’s IMC will not entail any investment on the part of the rural electric cooperative aside from the fact that it will not incur any liability in the IMC performance once the Makati-based company will be able to win the bid.
If the company’s bid will be successful, it offered to BENECO that it will compensate its service for the duration of the IMC in the amount of P100,000 a month.
For his part, Verzosa expressed surprise over the said offer, saying BENECO was able to gain the trust and confidence of multinational companies because of its sustained and improving performance of providing its rapidly increasing number of consumers reliable and quality power at cheaper cost.
However, he claimed that BENECO is inclined to politely deny the offer considering the distance between BENECO and ZAMCELCO, apart from the fact that the terms and conditions of the proposed technical partnership is not so clear which might jeopardize its operation, especially in the realization of the various programs and projects that it was able to line up for the continuous introduction of innovations that will result to the existence of a reliable system to string the quality of power to consumers.