The board of Zamboanga City Electric Cooperative Inc. or Zamcelco awarded the investor-management contract to the joint venture of Crowninvestments Holdings Inc. and Desco Co., which offered a P2.5-billion deal.
The winning joint venture bid will manage the operations of the Zamcelco and resolve the financial woes of the electric cooperative which handles the distribution of electricity in Zamboanga City.
“The joint venture deems that this is the appropriate amount to pay all existing obligations, provide capital infusion to upgrade the facilities and improve the services of Zamcelco. The great city of Zamboanga deserves this infusion so as to be the premier distribution utility in Mindanao,” Crowninvestments and Desco said in a joint statement.
Zamcelco was saddled with more than P2 billion worth of debt to power suppliers, including a P374-million loan with the National Electrification Administration.