ILOILO CITY — The city’s newly-installed mayor, Jose S. Espinosa III, said he will welcome power and water companies to improve utility services and sustain economic momentum.
Mr. Espinosa, the former vice-mayor, told reporters last week that he will also welcome investment in transportation and communication.
“If investors have any proposals, including power, they can present them to us as long as they are workable and doable, and not hypothetical,” said Mr. Espinosa, who assumed the post on Oct. 30 following the dismissal of former mayor Jed Patrick E. Mabilog on graft charges.
Mr. Espinosa said several investors have presented water and transportation proposals to the city government.
He said an Ayala group firm signified its intention to partner with Metro Iloilo Water District (MIWD) in distributing water in the city’s Molo and Arevalo districts.
The city council has also granted a franchise to South Balibago Resources, Inc. (SBRI) to carry out a P450-million project for the construction, operation, and maintenance of a water supply system to households not connected to MIWD in Jaro district.
Chinese electric vehicle maker BYD Auto Industry Co. Ltd also presented a plan for a monorail system to address the road congestion problem in the city.
The mayor said the proposals should not be disadvantageous to consumers.
“We want to ensure that while we allow another key player, they will not overcharge our residents so they can recoup their investments,” Mr. Espinosa said.
The mayor’s announcement comes amid the franchise renewal application of Panay Electric Company (PECO), the sole power distributor in Iloilo City.
PECO, which is partly owned by the Lopez Group, has been serving the city since 1923 and its current franchise will expire in 2019.
Majority of the city councilors have passed a resolution opposing the renewal for another 25 years while a signature campaign is also being circulated in view of perennial complaints against the company.
Most of the complaints are about inefficient meter reading, erroneous billing, unexpected charges, and poor customer service, among others.
Mr. Espinosa said whether PECO retains or loses its franchise, he wants to make sure of the continuity of power service.
“Many investors are visiting us and I tell them that Iloilo City is one of the cities with the most stable supply of electricity,” he said.
Meanwhile, the business community appealed to the city government to “undertake an unbiased assessment on the issue” to maintain the positive investment climate.
The Iloilo Business Club, Inc., Federation of Filipino Chinese Chambers of Commerce of Panay, Inc., and Ilonggo Producers Association, in a joint statement issued last week, stressed that power is one of the pillars of businesses and the economy.
They said that consumers deserve quality distribution services and recognize that PECO has been beset with issues over the years “which resulted in general distrust.”
“It is because of this that we recommend for the City Government to undertake an unbiased assessment on this issue in order for the consumers, local government and lawmakers in charge of deciding on the application to have an informed decision on the options that are available,” they said.
The business groups said industry experts are needed to analyze whether there is a need to renew the franchise or not.
“Whatever the outcome of the independent assessment is, economic activities in Iloilo should not be disrupted or compromised. The business community strongly emphasizes the need for stability in the availability of power in the city.”
On Nov. 24, the Iloilo Economic Foundation, Inc. also conducted a Forum on Utilities and Infrastructures where PECO was invited as one of the speakers.
Meanwhile, Sen. Franklin M. Drilon, a native of Iloilo, who was in town last week for a forum, said the proposed takeover of the government of the power distribution in Iloilo city is not feasible under the Electric Power Industry Reform Act (EPIRA).
He added that a government takeover is not the solution to the distribution problem as required public bidding for every procurement exercise would only hamper operations.
“I am not in favor of a takeover. It is not allowed. It is not practical. The government is a very poor manager,” Mr. Drilon said.
Mr. Drilon assured that PECO will be held accountable for any failure to provide quality service during the hearings for the renewal of its Congressional franchise.
“Franchise is a privilege granted by the state and by the government to a particular enterprise in order to provide public service. That is why it is a public utility. We will ask PECO to respond to all these complaints and what they will do in order to merit a renewal of the franchise,” he said. — Louine Hope U. Conserva
