MAYOR GORDON: ‘’PSP to Improve Power Distribution System’’

Mayor James ‘’Bong’’ Gordon, Jr. has announced before the officials and employees of the City Government of Olongap0 that the ‘’Asset Purchase Agreement for Olongapo City’s Electric Distribution System’’ with the Cagayan Electric Power & Light Company, Inc. (CEPALCO) has been formally sealed in accordance with Resolution No. 60 (Series of 2010).

‘’Kailangan ng maiangat ang kalidad ng power distribution system sa lungsod sa pamamagitan ng Private Sector Participation o PSP,’’ said Mayor Bong Gordon during the flag raising ceremony on August 9, 2010 at the Rizal Triangle Multi-Purpose Center.

Resolution No.60 (Series of 2010) entitled, ‘’A Resolution Authorizing the Mayor to Sign and Execute the Final Asset Purchase Agreement for the Sale and Modernization of the City’s Electric Distribution Utility System, Determining the Use of the Asset Sale Proceeds, and for Other Purposes,’’ authorized the Mayor to sign and execute the final asset purchase agreement for the sale and modernization of the city’s electric distribution utility system and to determine the use of the asset proceeds.

It can be recalled that a public bidding was conducted by the Bids and Awards Committee (PBAC) for the sale and modernization of the Public Utilities Department (PUD) last June 9, 2010 which resulted into a failure because the bidders did not meet the reserve price of P610.5 M set by the city. However, further negotiations with CEPALCO, the highest bidder, resulted to its conformity to the reserve price.

Also stipulated in the resolution is that the sale of the City’s electric distribution system will be used for payment of obligations with the National Power Corporation (NPC) and San Miguel Energy Corporation (SMEC), and for the settlement of separation, severance or early retirement pay of affected PUD employees.

Mayor Gordon also urged PUD employees during the ceremony to continue doing their tasks and obligations and assured that qualified employees will be absorbed or transferred to different offices and agencies that demand additional manpower and services.

With the aid of mobile TV, pictures during the signing between Mayor Gordon and CEPALCO representative Hochi Abaya were flashed on screen.

With the aid of mobile TV, Mayor Bong Gordon presents to the city government officials and employees pictures of the signing of the ‘’Asset Purchase Agreement of Olongapo City’s Electric Distribution System” between the City Government and Cagayan Electric Power & Light Company, Inc. (CEPALCO). Mayor Gordon presented the pictures of the contract signing at the flag raising ceremony on August 9, 2010 at Rizal Triangle Multi-purpose Center.

Pao/rem