Primelectric Holdings Inc., an affiliate of MORE Electric and Power Corp., plans to invest about P4 billion in its joint venture with Central Negros Electric Cooperative.
Primeelectric and CENECO signed a joint venture agreement that will benefit more than 200,000 consumers. Primeelectric president and chief executive Roel Castro said the JVA was signed on June 3, giving birth to Negros Electric and Power Corp.
“For the asset purchase, what we signed in the JVA, around 70 percent of P2.4 billion, so that’s P1.8 to P1.9 billion. That is for the asset purchase then working capital of around P2.2 billion,” Castro said.
The JVA will still go through a referendum on June 24 and June 25 to gain the approval of the member-consumers.
Once the JVA is approved by the member-consumers, the National Electrification Administration will certify it. “But since we want the JVA to have a new franchise, we will have to go to Congress and apply for new franchise,” Castro said.
Castro said they wanted to share with Negros consumers the improvements made in the electric distribution system in Iloilo City run by MORE Electric.