2 weeks ago
6
The National Grid Corporation of the Philippines (NGCP) has welcomed the decision of the Singaporean tribunal and assured that the concession agreement will remain unchanged.
In a briefing on Wednesday, Feb. 26, NGCP spokesperson Cynthia Alabanza explained that the recent arbitration case versus the Power Sector Assets and Liabilities Management Corp. (PSALM) and the National Transmission Corporation (TransCo) was a vindication, as she stated that “all the actions we’ve made in the concession agreement were proven in the arbitral court.”
She clarified that no changes will be made in the concession agreement moving forward as well as its current operations.
“Hopefully, [this] will clear the clouds surrounding NGCP and how we run the jurisdiction system,” Alabanza said.
Alabanza stated that many of the issues raised, including the alleged Anti-Dummy Law violation, were addressed in the arbitral decision, which ruled that no violation of the law was found.
The Anti-Dummy Law, or Commonwealth Act No. 108, pertains to businesses and persons prohibited from foreign ownership, as well as regulating foreign employment.
“NGCP has complied with contract, franchise, as well as rules and regulations,” she added.
Earlier this week, Synergy Grid and Development Philippines Inc. (SGP) stated that the tribunal ruled valid over NGCP’s ₱58 billion prepayment to PSALM in 2013, while NGCP’s concession fee would be cut back to ₱13.12 billion. PSALM and TransCo would reimburse ₱56.53 million for right-of-way expenses with interest.
“There are some items specified there that would be reduced but this is still fresh out of the oven. There are still gaps that we need to fill in terms of implementation,” Alabanza explained. “We’ve always endeavored to be transparent from day one, but you just really have to keep repeating the message over and over again.”
The decision has been made by the Singapore International Arbitration Centre (SIAC), affirming NGCP’s rights to utilize transmission assets during the concession period including telecommunication systems.
