70% shares sold to PHI

New BLCI owners vow

To improve services

TAGBILARAN CITY, Bohol, Aug 22 (PIA)—Tagbilaran City power consumers, at least those served by Bohol Light Company Incorporated (BLCI) would have nothing to fear, in fact may look forward to a more improved service.

Thus assures Roel Castro, president of Primelectric Holdings Incorporated (PHI), the new majority shareholder of the former Provincial Public Utilities Electric Division (PPUD) which the Provincial Government lost by privatization in the late 1990.

The Provincial Government of Bohol, which owned PPUD’s electric and water utilities distribution, sold 70 percent of the shares then to Salcon Power, now SPC Power Corporation, who also recently sold its share to PHI, recently.

With a distribution franchise expiring in October next year, SPC Power, by law, offered the reacquisition of the 70 percent shares to the provincial government over the right of first refusal, Bohol being the initial owners of the property.

However, According to Castro, the Bohol Sangguniang Panlalawigan issued a resolution waiving the right, even as a recent resolution was also passed asking SPC Power Corporation to hold the offer for reacquisition in abeyance, for sixty days for the Provincial Government to make a conclusive study before pursuing any further action on the mulled reacquisition of the majority shares.

Averring that the power distribution business was way too much for the provincial government, running the department sapping too much of local government resources and the bureaucratic processes posing as a major barrier towards critical management decisions in the utility business, Bohol decided to rather keep a minority share of the business while offering the majority for a private management.

Acquiring BLCI is a valuable opportunity that should not be missed, Castro said, in a press material distributed to local media.

Over the past years, BLCI, the company formed after PPUD, has demonstrated a strong financial performance, has acquired an experienced management team and has pooled a competent labor force in the business of power distribution.

According to PHI, as a distribution utility, it has established a track record of maintaining the lowest distribution rates in Bohol, expanded and upgraded its facilities, including 20 MVA mobile substation, bringing the sagging reliability and performance of the old PPUC into a consistent category A.

Now faced with a daunting task, PHI’s entry into BLCI aims to further elevate consumer service standards through substantial capital investments of at least P1Billion in rehabilitation and modernization of distribution assets.

We are well-prepared, both technically and financially, to execute the rehabilitation and modernization strategy, ensuring robust distribution system within the franchise area, Castrol told the press during a briefing Thursday.

With the entry of PHI, we will continue to improve on BLCI performance and deliver quality service to its consumers, Castro said.

PHIS is set to take over operational control of BLCI within the year even as it is set to initiate franchise renewal application with Bohol in Congress. (PIABohol)