THE Northern Davao Electric Cooperative, Inc. (Nordeco) denied claims from the Davao Consumer Movement (DCM) that they had signed a P1.5 billion loan to fund a submarine cable project without proper approval from government agencies and member-consumer-owners (MCOs).
Nordeco stated that there are no records of such a loan with any financial institution related to the Submarine Cable Project in Igacos.
Nordeco also asserted that once the submarine cable connecting Island Garden City of Samal (Igacos) to Pantukan, Davao de Oro is completed, it will reduce the power rate for MCOs by 0.80 centavos per kilowatt-hour (kwh).
During a recent Senate Committee on Energy joint hearing with Trade, Commerce, and Entrepreneurship, DCM Convenor Ryan Amper alleged that the project had not received proper approval from government agencies and lacked transparency.
He claimed that Nordeco obtained a P1.5-billion loan in 2022 for the project without securing approvals from the Electrification Administration (NEA) and the Energy Regulatory Commission (ERC).
Moreover, local government units in Davao del Norte were reportedly unaware of the project, and the Department of Natural Resources (DENR) had not granted an Environmental Compliance Certificate (ECC).
Amper also pointed out that Nordeco's Board of Directors, who were not elected by the member-consumers but rather labeled as "officers-in-charge," made the decision to sign the contract for the project.
"Mula 2012, wala pong naging election para sa board of directors ng Nordeco. Hindi po sila elected, pero pumirma sila ng P1.5 billion project na lahat kami ang magbabayad (Since 2012, no election was held for the board of directors of Nordeco. The current board members are not elected, yet they signed the P1.5 billion project that the consumers might have to shoulder)," Amper said.
During the hearing, Amper highlighted the existence of more cost-effective alternatives to Nordeco's proposed project. He underscored that Igacos currently has a one-kilometer submarine cable connecting it to Davao City. He also cited the upcoming three-kilometer Davao-Samal bridge as a potential opportunity to lay a power line underneath it.
Amper emphasized that rather than proceeding with Nordeco's plan to lay a 15-kilometer power line at an estimated cost of P1.5 billion, a more efficient power connection for the island could be achieved by upgrading the existing one-kilometer submarine cable and utilizing the forthcoming bridge.
He added in Filipino, "There is an existing one-kilometer submarine cable that can be upgraded, and once the bridge is completed, they can install a power line underneath it. However, what Nordeco intends to do is lay down a 15-kilometer line costing around P1.5 billion."
Amper's proposed alternatives could provide a more practical and budget-friendly solution to meet the power needs of the island.
Senator Grace Poe echoed the consumer group's concerns, expressing worry that the alleged undisclosed P1.5-billion loan might burden consumers without a guarantee of improved service quality.
Meanwhile, Nordeco’s Institutional Services Department Manager, Marilou Impuesto, assured the committee that they had set a new target to complete the interconnection project within the year. (ICE)