Monday, June 02, 2008 City willing to pay dues to run hydros By Rimaliza Opiña
BAGUIO City was not remiss in its duty of paying taxes to the Municipal Government of Tuba for the operation of the mini hydroelectric power plants in Barangays Nangalisan and Tadiangan in Asin.
City Administrator and concurrent technical working committee head Peter Fianza said several representations have been made with the local government of Tuba for the payment of business taxes, but they did not accept the city's payment.
"The city is willing to pay if only they accept it," Fianza explained even as he said the city also intends to write to the Provincial Board (PB) of Benguet to debunk claims that the city has been illegally operating the facility.
Tuba Councilors Blas Dalus and Adora Paus asked the assistance of the Benguet Provincial Board for the issuance of a cease and desist order and to compel the Baguio City Government to turn over the facilities to Tuba.
Likewise, Baguio Mayor Reinaldo Bautista Jr. said the city has been generous in giving Tuba its share in the operation of the power plants.
Fianza also committed that once the Energy Regulatory Commission (ERC) approves the city's application to sell electricity, Tuba's shares in this undertaking would also be remitted to the town.
Tuba is supposed to get one percent from the gross sales and another one percent as its national wealth tax share. Benguet Electric Company (Beneco) buys the power generated from the plants.
When Hedcor Incorporated managed the facility, Tuba used to get one percent from it and one percent from the Baguio Water District (BWD). After the city took over, Fianza said the city and Tuba agreed on a one percent share pending approval of their application to sell.
Tuba gets an average P24,000 monthly as its share from the operations of the electric generation plants.
The local government of Tuba did not renew the city's business permit allegedly because the city failed to fulfill its commitments in settling land claims and remitting the town's shares.
PB Member Juan Nazarro said the absence of a business permit can be used as basis for the issuance of a demand letter.
The Benguet Board meanwhile advised the local government of Tuba to exhaust administrative remedies first before resorting to the court.
