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Wednesday, June 11, 2008

 

BIG DEAL
By Dan Mariano
Distasteful


In their desperation to amend the Electric Power Industry Reform Act (EPIRA)—and ultimately wrest Manila Electric Co. (Meralco) from its current controlling owners, the Arroyo administration and its allies seem to have gone berserk. The ruling coalition has let loose the likes of Winston Garcia and its senatorial cohorts, not unlike the way Julius Caesar had sicced imperial Rome’s dogs of war on its enemies in the three parts of Gaul.

So distasteful is the manner in which this offensive is being carried out that this column finds itself agreeing—uncharacteristically—with the likes of Sen. Panfilo Lacson.

In a recent media interview, the opposition senator said: “Ang parliamentary courtesy ay isang time-honored tradition na dapat isaalang-alang ng lahat ng mambabatas. Maaari namang ma-emphasize ang isang punto sa isang madiin ngunit maayos at magalang na pamamaraan. Ang mga resource person na iniimbitahan sa pagdinig ng Senado ay mga bisita na hindi dapat nabu-bully o nababastos (Parliamentary courtesy is a time-honored tradition that all lawmakers should observe. It is possible to emphasize a point in a forceful but orderly and respectful manner. Resource persons who are invited to a hearing in the Senate are guests who should not be bullied or ridiculed).”

Amen to that—if only the senator and his colleagues would remember the same whenever it is they who are at the bat.

Lacson, of course, was alluding to how pro-administration senators hectored leaders of the Joint Foreign Chambers (JFC)—an influential albeit informal grouping of the chambers of commerce of the United States, Australia-New Zealand, Canada and Korea—as well as those of the Philippine Association of Multinational Companies Regional Headquarters—throughout a hearing of the Senate energy committee last week.

JFC had made known its objections to an administration plan to amend EPIRA. Its leaders believe that the perceived “failure” of the law is not due to its provisions but to the inability—or reluctance—of the government itself to fully implement it.

That JFC had declared its objections to the proposed EPIRA amendments in a letter its officers sent directly to President Arroyo, and not to the Senate energy committee, was the cue pro-administration senators took to badger the foreign businessmen.

The protocol “gaffe” notwithstanding, the position taken by JFC merely echoed the opinion aired by no less than the head of the state company charged with auctioning off National Power Corp. and other power entities of the government. Jose Ibazeta, president of the Power Sector Assets and Liabilities Management Corp., has gone on record to say that EPIRA does not need to be amended given the progress PSALM is making in privatizating Napocor’s power generation plants along with its purchased power agreements.

The JFC letter to Malacañang triggered the pro-administration senators’ outburst—but was the procedural mistake, if a mistake it really was, enough reason for the likes of Sen. Juan Ponce Enrile to hit the proverbial roof?

One of the foreign businessmen who bore the brunt of the pro-administration senators’ ire was Henry Schumacher, executive vice president of the European Chamber of Commerce.

According to knowledgeable sources in the business community, the harsh words that the pro-administration senators threw in Schumacher’s way were gratuitous, to say the least. Sources credit him with attracting some 90 percent of the direct investments from Europe that have come to the Philippines in the last 20 years.

 Schumacher has done a lot in convincing other foreign investors that the Philippines is worth investing in, said one source. The foreign direct investments that Schumacher has helped bring into the country have generated as much as one million jobs, said another.

The pro-administration senators also accused JFC of blocking the administration’s bid to bring down the cost of electricity because its members include some Independent Power Producers (IPPs), which have been raking in profits from “take or pay” and other provisions in their purchased power agreements with Napocor.

 While some IPPs are indeed part of JFC, the bulk of the grouping’s 2,000 or so members are power consumers. In fact, these JFC members consume 25 percent of the electricity that Meralco distributes in its Luzon franchise area. Many other JFC companies are located all across the archipelago—and are just as concerned about the high cost of power in the country.

According to JFC, EPIRA—as an example of reform legislation—is unmatched in Southeast Asia. It added that the law, once fully implemented, will create a competitive electricity market in the Philippines that should lead to more efficiency and fair energy costs,

The problem is that some sinister quarters seem hell-bent on preventing EPIRA’s full implementation.

dansoy26@yahoo.com

   
 

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