The new investors of Zamboanga City Electric Cooperative plan to spend P670 million in the next 18 months to replace equipment and rehabilitate substations to improve service to customers.
“For now, we’ve estimated capex requirement of P670 million for approval of the ERC (Energy Regulatory Commission). If we file, we will be implementing this. The submission is 2019 to end of 2020 although we have to finalize and submit this to the ERC,” said Joseph Omar Castillo, representative of the joint venture of Crown Investments Holdings Inc. and Desco Inc.
The joint venture won the investment and management contract for Zamcelco with a bid of P2.5 billion in an auction last year. The joint venture has since performed a financial and technical audit of the electric cooperative when it took over in January.
The joint venture has paid out P1.2 billion worth of Zamcelco’s debts to power suppliers, including the National Electrification Administration and Power Sector Assets and Liabilities Management Corp. out of the P2.5-billion bid.