BAGUIO Mayor Mauricio Domogan last Monday urged the City Council to speed up the confirmation of a contract between the city government and Kaltimex Energy Philippines for Kaltimex to operate the city-owned Asin mini-hydroelectric plants in Tadiangan and Nangalisan, Tuba, Benguet.
Domogan said the city has waited long enough to have the mini-hydros, once an income-generating venture for the city, restarted.
The contract signed last January by Domogan and Kaltimex Chairman Krishan Kumar Ralhan needs to be confirmed by the council before the city can issue the notice to proceed.
Once the notice is issued, Kaltimex will submit within six months the detailed working plans for the project.
Kaltimex will run the three plants for 20 years.
The project will have a P500,000,000 capitalization spread over four years.
Kaltimex will pay the city P18 million a month for the first two years.
The rent will increase to P40 million in the third year, to P50 million on the fourth year and to P60 million on the fifth and succeeding years.
The firm will also remit to the province of Benguet, municipality of Tuba and barangays Tadiangan and Nangalisan one percent of the gross receipts and 3 percent of the net surplus to owners of properties affected by the pipelines and plant facilities.