Kahit parehong sablay: Why did Sammy Laynes extend anomalous sublease deal between FICELCO, CPGI?

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Questions remain over Virac Mayor Sammy Laynes’ decision to endorse the extension of the sublease contract between FICELCO and Catanduanes Power Generation Incorporated (CPGI) despite its disadvantageous terms.

Laynes endorsed the extension of the contract for the sublease of the National Power Corporation’s (NAPOCOR) aging generator sets on October 17, 2016 even if CPGI was supposed to build a new power plant for Catanduanes, as stated in the Electricity Supply Agreement with FICELCO.

The sublease deal appears nothing more than a money making scheme for the two companies since FICELCO only charges CPGI P500,000 for renting the generators that it leased from NAPOCOR for P1 million.

Using the diesel generators owned by NAPOCOR, CPGI produces the electricity and sells it to FICELCO for P15 million, thereby making a profit of P14 million yearly.

FICELCO’s deal with CPGI also requires it to pay the latter for undelivered electricity under the concept of “foregone energy.” Documents showed that from 2011 to 2014, CPGI charged FICELCO P50.3 million for undelivered energy.

This would not have been the case had CPGI constructed its own power plant to meet its obligation of supplying 22.6-million kilowatt-hour per year of electricity to Catanduanes.

As if Laynes’ extension of the questionable deal between FICELCO and CPGI wasn’t enough, Catanduanes Governor Joseph Cua allowed the two companies to exploit residents of the province further by endorsing Francis Gianan as FICELCO’s General Manager.

Gianan was a former member of FICELCO’s screening committee who had been suspended by the National Electrification Administration for committing acts prejudicial to FICELCO and the consumers.