Workers group hits cronyism, privatization, in addressing PH’s energy problems

The labor group Partido Manggagawa (PM), on Thursday, said the Filipino people may see no end to the country’s recurring energy and power crisis because government officials, past and present, address the problem by way of cronyism that result not to only to the massive transfer of public wealth to private individuals but also delays in the roll out of important energy development projects. 

The group refers particularly to the 15-year extension of the Malampaya gas-to-power contract signed recently by President Marcos, Jr., and the failing performance of the grid operator, the National Grid Corporation of the Philippines (NGCP) under the control of business tycoons in partnership with the State Grid of China, but now the subject of repeated senate investigations.

PM Spokesman, Wilson Fortaleza, said the Malampaya extended deal gave new holders of Service Contract 38, in the person of Dennis Uy and Ricky Razon, golden opportunities to amass wealth that is supposed to belong to the State once the BOT contract expires next year. 

“It’s cronyism 2.0. Yong hirap na hirap ang ating mga atleta na makarami ng gold medal sa SEA Games sa Cambodia, habang dito sa atin, may dalawang bilyonaryo na hindi man lang pinagpawisan para makakuha ng bilyones na ginto sa pamamagitan ng kwestyunableng kontrata,” said Fortaleza in a statement sent to media.

At least P100 million is estimated to be the daily take from the Malampaya project. This minimum amount, he said, as well as the new wealth that can be extracted under the extended contract, “will all slip into to the hands of Uy’s Udenna Corporation and Razon’s Prime Infrastructure rather than to the government that owes billions of accumulated social debts to its people.” 

Uy and energy officials were accused by many quarters, including the Senate, of facilitating the ‘midnight’ takeover of the Malampaya contract during the time of the Duterte administration by orchestrating the forced acquisition of the Shell and Chevron shares after denying their application for contract extension in 2019. Criminal cases against Uy and then Energy Secretary Alfonso Cusi were now pending before the Office of the Ombudsman.

Fortaleza, who follows extensively the developments in the energy sector since pre-EPIRA days as fellow at the Center for Power Issues and Initiatives (CPII), said further that the billions in Malampaya funds over those long years under Service Contract 38, “should rather not been wasted like pork barrels but allocated wisely for the development of alternative sources of power like renewable energy and in enhancing the capacity of the state-owned PNOC in anticipation of eventual government takeover of the project. 

The government, added Fortaleza, confuses itself by being signatory to the Paris Agreement on climate change that commits to de-carbonization with its desire to secure the current power and future supply of power with more gas-to-power projects, leaving that policy vacuum open for cronies to advance their wealth agenda.

Meanwhile, in reaction to the mounting call for the government to take back operations of the national grid from Chinese control, Fortaleza said this policy mea culpa on the part of Congress which itself facilitated the privatization of this ‘crown jewel’ way back in 2009, “must lead to complete government takeover because a less-China NGCP won’t necessarily lead to increased government control of the grid or better transmission services, in the same way as oligopoly in the generation sector didn’t lead to efficiency and lower power cost.” 

“Baka naman ‘alisin ang China, ibigay sa iba’ lang ang mangyari’, which could be for the same cronies,” said Fortaleza.

He noted that much of the recurring power interruptions in the country is due to very slow developments in the transmission sector as much of NGCP’s revenue went into the pockets of shareholders as dividend rather than to capital expenditures, while withholding of capacities on the part of gencos results to profiteering as the tighter the supply traded in the spot market, the higher the prices. ### 

PRESS RELEASE – Partido Manggagawa, 18 May 2023, Wilson Fortaleza, Spokesperson, + 63 945 218 2693

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