Kaltimex told to produce documents on Asin hydro rehabilitation

BAGUIO CITY (5 February 2021) – City officials recently requested Kaltimex Energy Corporation through its president and chief executive officer Allan Uy and project manager Engr. Jurist T. Awal to submit to the City Council within two weeks from January 25, 2021, the pertinent documents on the proposed rehabilitation of the three minihydro plants at Asin, Nangalisan, Tuba, Benguet.

Under Resolution No. 033, series of 2021, signed by Mayor Benjamin B. Magalong, city legislators stated the need for the project proponent to support its willingness to pursue its contract with the city government for the rehabilitation of the three minihydro power plants by providing the appropriate documents to substantiate their capacity to bankroll the implementation of the multi-million project.

Among the documents that must be submitted by the company include expression of intent to pursue the contract with the city government, proof of financial capability to sustain the implementation of the works in the said project; initial timetable for six months on how to undertake the project; program of work for the project and updated company profile with the Securities and Exchange Commission (SEC) by virtue of the provided SEC registration.

Earlier, the city legislative body summoned the officials of Kaltimex Energy Corporation to explain the serious delays in the implementation of the rehabilitation of the city-owned Asin minihydro power plants that resulted to significant losses on the part of the city in terms of potential income  to be derived from the operation of the renewable energy plants.

During their appearance at the previous meeting with the City Council, the company officials expressed their willingness to continue the enforcement of the contract.

In 2006, the city government took over the management and operation of the three Asin minihydro power plants from the Aboitiz-owned Hydroelectric Development Corporation (HEDCOR) after the expiration of the 25-year agreement.

However, in October 2012, the Energy Regulatory Commission (ERC) issued a cease and desist order that directed the city government to stop the operation of the renewable energy plants after the city was not able to secure the required certificate of compliance from the regulatory agency to justify the continuous operation of the aforesaid plants.

In 2015, the city awarded the proposed rehabilitation and upgrading of the three minihydro power plants to Kaltimex energy Corporation after the special bids and awards committee ascertained that it was the responsive and complying bidder to the terms of reference for the aforesaid project where the agreement was subsequently transmitted to the local legislative body for confirmation.

Ironically, it took the City Council approximately two years to confirm the memorandum of agreement between the company and the city that paved the way for the serious delays in the implementation of the project to date. – Dexter A. See