Aquino okays Olongapo power privatization

MANILA, Philippines – President Benigno Aquino III approved the privatization of Olongapo City’s power distribution infrastructure.

Through Republic Act (RA) No. 10373, the president gave a 25-year franchise to Olongapo Electricity Distribution Company. The law is said to hasten modernization. It also gives the power distributor a franchise “to construct, install, establish, operate and maintain for commercial purposes in the public interest, a distribution system for the conveyance of electric power to the end-users in the city of Olongapo and its suburbs.”

RA 10373 also said that the company must “supply electricity to its captive market in the least costly manner.” The document also stipulated that possible franchise revocation might occur if “the grantee fails to operate continuously for two years.”

James Gordon Jr., the mayor of Olongapo, praised President Aquino’s approval of the franchise. He said that Olongapo Electricity Distribution Company, Inc. will modernize the city’s power distribution system and improve its infrastructure.

Gordon said that the company’s presence would ensure a steady power supply for the city. He added that the privatization of the firm “guarantees that Olongapo will have an adequate supply of electricity and continuous service delivered to residents and businesses. “

“They will take over the power distribution network of the city and ensure that efficient services, and affordable power rates will be delivered,” Gordon said.

The rehabilitation of the city’s power system is expected to cost at least P1 billion. – Rappler.com