The National Electrification Administration granted consent on the joint venture agreement between Central Negros Electric Cooperative and Primelectric Holdings, Inc.
In a memorandum dated November 13, 2023, NEA Administrator Antonio Mariano stated that the agency grants its consent to the JVA between Ceneco and Primelectric subject to the following conditions: The settlement by Ceneco of all of its outstanding loans and obligations with the NEA; the settlement by Ceneco of all of its outstanding loans and obligations with all other creditors who hold liens on its properties and the removal of such liens.
Ceneco is directed to submit proof of settlement of such obligations to the NEA as soon it is available, and that payment by Ceneco of the pertinent separation pay and retirement benefits under applicable laws and collective bargaining agreements that will be due to its employees who will be separated by virtue of the implementation of the JVA.
Ceneco must ensure that it has set aside adequate funds for the bill and meter deposits of its member-consumers, NEA said.
In accordance with Rule III, Section 18() of Department of Energy Department Circular 2013-07-0015, the assets of Ceneco that were funded or sourced from grants, subsidies, or other assistance from NEA shall not form part of the assets that shall be sold to Primelectric/NEPC.
Ceneco is also directed to identify such assets and submit their current valuation as appraised by an NEA-accredited appraisal service provider.
For the grant of a valid and effective legislative franchise to NEPC for the current franchise area of Ceneco, Primelectric/NEPC must undertake that it shall fulfill the mandate for the full electrification of the franchise area of Ceneco which shall be funded by Primelectric/NEPC.
The NEA reserves its right to recommend that this express stipulation be included in the franchise of NEPC; and Ceneco must submit a full accounting of the settlement of its obligations and the net cash amount it shall have after the implementation of the JVA, including all of its outstanding loans and obligations with NEA and all other creditors as well as the value of the assets funded or sourced from grants, subsidies or other assistance from NEA.*