Gov't subsidizing Hanjin power needs - solon
A congresswoman on Wednesday revealed that Korean firm Hanjin Heavy Industries and Construction-Philippines in Subic is getting "preferential treatment" from government in form of electricity rate discounts.
This was revealed by Akbayan Rep. Risa Hontiveros who said that government is actually “subsidizing" the foreign company’s power needs.
The party-list representative based her allegation on Executive Order 701, where President Arroyo directed the National Transmission Company or Transco to give Hanjin a “discount on transmission and generation charges for 10 years."
This, even as Hontiveros said that the company has the financial capacity to shoulder its own investment costs.
From the first year to the sixth, the government-owned National Power Corp. and Transco were ordered by Malacañang to give Hanjin discounted generation and transmission rates of $0.0491 (P2), which shall slightly increase to $0.0600 (P2.4) for the seventh to 10th year, according to Hontiveros.
“This is a hefty discount considering the power needs of an industrial firm and compared to the P5 per kilowatt-hour rate imposed on Filipino consumers to cover NPC's generation charge and Transco's transmission charge," she said.
The power subsidies, the congresswoman said, would not only be for Hanjin's shipyard in Subic. They would also cover another shipyard which is yet to be constructed in Mindanao.
“The cost of these subsidies would eventually be imposed on Filipino consumers in the form power rate hikes, which are oftentimes rationalized by increasing generation and transmission costs," Hontiveros pointed out.
The extent alone of concessions to Hanjin, “at the expense of labor standards, environmental protection, and revenues lost due to power subsidies shows a government that bends backward for foreigners but gives its own citizens second-class treatment."
Amidst the inflationary effect of the rice shortage and oil price hikes, the solon said that EO 701 should be revoked. “It is not only unfair, it is also costly on the part of the government. The cost of these concessions would be burdened by the Filipino people."
“It is not a question of how many millions of dollars that the company is investing in the country. The principle of parity and the rule of law should be applied," Hontiveros stressed.
She earlier filed House Resolution 430 to investigate the apparent lack of health and safety standards in the Hanjin shipyard facility in Subic. - GMANews.TV
This was revealed by Akbayan Rep. Risa Hontiveros who said that government is actually “subsidizing" the foreign company’s power needs.
The party-list representative based her allegation on Executive Order 701, where President Arroyo directed the National Transmission Company or Transco to give Hanjin a “discount on transmission and generation charges for 10 years."
This, even as Hontiveros said that the company has the financial capacity to shoulder its own investment costs.
From the first year to the sixth, the government-owned National Power Corp. and Transco were ordered by Malacañang to give Hanjin discounted generation and transmission rates of $0.0491 (P2), which shall slightly increase to $0.0600 (P2.4) for the seventh to 10th year, according to Hontiveros.
“This is a hefty discount considering the power needs of an industrial firm and compared to the P5 per kilowatt-hour rate imposed on Filipino consumers to cover NPC's generation charge and Transco's transmission charge," she said.
The power subsidies, the congresswoman said, would not only be for Hanjin's shipyard in Subic. They would also cover another shipyard which is yet to be constructed in Mindanao.
“The cost of these subsidies would eventually be imposed on Filipino consumers in the form power rate hikes, which are oftentimes rationalized by increasing generation and transmission costs," Hontiveros pointed out.
The extent alone of concessions to Hanjin, “at the expense of labor standards, environmental protection, and revenues lost due to power subsidies shows a government that bends backward for foreigners but gives its own citizens second-class treatment."
Amidst the inflationary effect of the rice shortage and oil price hikes, the solon said that EO 701 should be revoked. “It is not only unfair, it is also costly on the part of the government. The cost of these concessions would be burdened by the Filipino people."
“It is not a question of how many millions of dollars that the company is investing in the country. The principle of parity and the rule of law should be applied," Hontiveros stressed.
She earlier filed House Resolution 430 to investigate the apparent lack of health and safety standards in the Hanjin shipyard facility in Subic. - GMANews.TV
posted by OlongapoCity Zambales at
6:06 AM
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