Malaya Incident Raising 'Safety Concerns' on Plant O&M Contracts
The scaffolding collapse that caused some deaths at the 650-megawatt Malaya thermal power plant has raised "safety issues" that must be safeguarded by government, specifically the Power Sector Assets and Liabilities Management Corporation (PSALM), in its offer of operation and maintenance (O&M) contracts to private companies.
Notably, PSALM has been offering the Malaya plant for Operation and Maintenance Service Contract (OMSC) to private firms since the lapse of its rehabilitate-operate-maintain and manage (ROMM) arrangement with the Korea Electric Power Corporation (Kepco) in 2011.
When the incident happened, the facility is under OMSC arrangement with local firm SPC Power (interchangeably referred to as Salcon Power). This is the same company to which PSALM has offered the Naga thermal power plant in Cebu for a separate O&M deal.
When asked about the contractual liability of SPC on the 'scaffolding collapse incident', PSALM president Emmauel R. Ledesma Jr. just gave a general statement that "Salcon's liability, if any, will depend on circumstances of the incident."
He qualified though that "PSALM is not privy to the contract between Salcon and the smokestack contractor," referring to the portion of the facility which has been undergoing repair that triggered the tragedy at the power plant. …