Bacolod City – The proposed Joint Venture Agreement (JVA) between Central Negros Electric Cooperative and Ignite Power was described by Ceneco acting general Arnel Lapore as a “good thing,” which he expects to improve and develop its distribution facility.
Describing Ceneco as a “bleeding” electric distribution facility, Lapore said he thinks the JVA will give “fresh life” to Ceneco, noting the electric cooperative is losing P15 to 20 million a month due to the subsidy to the systems loss.
We can’t afford to continue bleeding until we can no longer pay our power suppliers. The systems loss is eating up our resources,” he stressed.
On April 13, Roel Castro, the president of Ignite Power and MORE Power in Iloilo, met with members of the Ceneco board, its two union presidents, National Electrification Administration (NEA) project supervisor Atty. Vic Alvaro, Atty. Ivan Zamora, who represented NEA Administrator Antonio Mariano Almeda, as well as Ceneco department and area managers, among others, and briefed them on the details of the JVA.
“To sum, it all both parties will undergo due diligence as far as the details of the JVA is concerned. We will be securing documents from them and they will be securing documents from us, particularly financial data which is needed to formulate the content of the JVA,” Lapore said.
He stressed that JVA is a needed shot in the arm for Ceneco, pointing out that its franchise will expire in seven years and there is no guarantee that it will be renewed.
This opportunity will give Ceneco a fresh lease on life “because Ceneco will remain as an entity and the JVA will assure a fresh renewal of the franchise and continuity, Lapore said, although he clarified that JVA “is not yet a done deal.” (Gilbert Bayoran via tvds photo by tvds)