Review of IPP Contracts Almost Completed, Renegotiations follow.(Business)

Article excerpt

Byline: MYRNA M. VELASCO

The key piece of the puzzle on what would be the future of the independent power producers (IPPs) contracted by the National Power Corporation (NPC) would finally be known this week, as the inter-agency committee (IAC) are now just wrapping up the review of the contracts.

Socioeconomic Planning Secretary Dante B. Canlas, who is part of the IAC review committee, has made sure that the body would be meeting the deadline set by President Arroyo, which is June 30 this year.

He said the IAC has set an internal deadline last Friday (June 21), but he said they have asked for at least two-day extension, so they can have a second pass on the unearthed flaws in the power purchase deals.

"We just need few days of extension from our internal deadlinebut we can surely complete the process by June 30, as we are mandated to submit our recommendations and findings to the President" Canlas said.

While the economic planning chief refused to give any hint on what were the findings of the committee; some technical staff privy to the on-going review; have indicated that there are some contracts that would be subjected to renegotiation on their tariff structures; and some would be on their guaranteed supply offtake.

Earlier, the Department of Justice (DOJ) has hinted of possible arbitration proceedings for some contracts that may be found to have provisions that are "onerous" or disadvantageous to the government. …