‘Legislature to OK CDA-CUC write-off amendment’

Lawmakers have reached a consensus to approve the pending bill that aims to spare a wining bidder for the power plant privatization from having to pay the Commonwealth Utilities Corp.’s $22.5 million debt to the Commonwealth Development Authority, said House Speaker Oscar M. Babauta.

In an interview yesterday, Babauta said that members who had opposed the bill are now amenable to it.

Reps. Ray Yumul of Saipan and Crispin Ogo of Rota had said the payment should be collected and used for badly needed infrastructure for CDA and CUC.

“The issue is whether or not the IPP will be asked to pay $22.5 million. They [Yumul and Ogo] wanted to use it for CIP projects but we already receive CIP funding every year. So there’s no need for that. I’ve talked with Rep. Yumul and he agrees. He is finally convinced that we should remove it [pass-on provision to IPP],” said Babauta.

He said Ogo, who is pushing for the construction of a windmill on Rota through the funds, has also expressed support for the bill.

“The government’s main focal point is the revitalization of CUC. Rep. Ogo was already amendable to that. He is very much concerned about the windmill and we told him it’s already part of the CUC task force’s goal,” said the speaker.

He said this came following a conference committee meeting between senators and House members on Senate Bill 15-62, which amends the recently enacted CDA writeoff as embodied in Public Law 15-12.

He said the conference report will soon be submitted for voting on the floor.

“I expect that it will be unanimously approved,” said Babauta.

The conference committee was co-chaired by Rep. Frank Dela Cruz, chairman of the House Committee on Public Utilities Transportation and Communications, and Sen. Frica Pangelinan.

The Senate bill, which was authored by Senate President Joseph Mendiola, amends Section 2 of the law “to further the rehabilitation and reorganization of the Commonwealth Utilities Corp.”

This provision refers to the requirement for the contractor to pay 50 percent of the $45-million CUC debt to CDA.

“This bill removes that requirement. We don’t want to pass it on to the investor because it will eventually be borne by the consumers as increased rates,” Mendiola had said.

This bill, along with the recently enacted Public Utilities Commission, is considered a prerequisite for the CUC privatization.