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Thursday, August 24, 2006
Transco's privatization may cause power rate hike, mass lay off
MILITANT group Bayan Muna warned the public of possible increases on electricity rates if the government succeeds in privatizing the National Transmission Commission (Transco) -- one of the country's largest government-owned and controlled corporation.
In a statement, Bayan said that after several setbacks over the privatization of a major power industry such as the Masinloc Power Plant, Transco "has been used to cover up government's mess due to unscrupulous deals with private bidders and independent power producers."
"The government is hastening the privatization of Transco to beat the deadline of disposing all power assets by year 2008. This is to catch-up with the ballooning debts of the National Power Corporation and other power industries, which is about to burst in the coming years," said Jeppie D. Ramada, Bayan Muna regional coordinator.
Ramada also warned of a possible mass lay-off due to Transco's privatization.
"While Transco executives gave assurance that the 3,600 employees will not be laid off, it is a given fact in privatization that the government loses its discretion to retain employees once a private bidder takes over. For instance, the privatizations of the National Steel Corporation and Meralco in the past years have retrenched workers in their operation," Ramada added.
Ramada said the privatization of Transco should be properly scrutinized especially with the recent controversy hounding the privatization of Masinloc plant.
"There are several pitfalls in the bidding scheme of the government and the people will be the one to suffer in the end," he said.
The militant group called on Congress to block the possible application for franchise by a bidding winner of Transco as long as the issues in the Masinloc Power Plant have not been resolved.
"We also call for a review on the Epira Act of 2001 after it failed to give protection to consumers and workers," Ramada said.
Officials of Transco declared Monday that Transco will definitely be privatized by the end of this year.
Transco president and chief executive officer Dr. Alan T. Ortiz said there are already 10 bidders who are willing to comply with the documentary requirements.
He said they are hoping that the winning concessionaire will be able to sign the contract by December this year. (BOT)
For Bisaya stories from Davao. Click here. (August 24, 2006 issue)
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