By MERLY TIBALAO

LINGAYEN —The new power firm that took over the operations of the Sual Coal Fired Thermal Power Plant (SCFTPP) has promised to finally settle all the plant’s accumulated financial obligations to the provincial government.

Federico Puno, president and chief executive officer of Team Energy that replaced Mirant Corporation as manager of the power firm last July 15, told Gov. Amado T. Espino, Jr that he wanted to start things at the plant “right and clear.”

The Team Energy commitment was made during a top level meeting at the Sual plant’s corporate board room held last Friday.

The provincial board had earlier authorized the governor enter into a settlement agreement with the National Power Corporation (NPC) which has incurred unpaid real property tax on the plant’s equipment and machineries since year 2006.

The unpaid obligations had ballooned to P179 million, including penalties and surcharges.

NPC earlier sought exemption from the real property tax, but the Local Board of Assessment Appeals had denied the petition last July 18. The provincial government subsequently sent the NPC a final demand letter and notice of delinquency for the payment of the said amount.

During the meeting, Puno said he and the NPC agreed that an advance payment for the principal of the obligation which amounts to P142 million would be settled first. He requested that the payment of penalties and surcharges which was waived by the previous provincial administration be temporarily deferred.

Puno pointed out that NPC which owns the power plant should be held responsible for the payment of the real property tax obligation.

“We just wanted to clear everything before we start taking over the plant’s operation, and so we are paying in advance the unpaid taxes, but this has to be reimbursed by the NPC,” Puno added.

Board Member Tyrone Agabas, for his part, told Team Energy that condoning a penalty is not favorable to the province and would only result in a “vicious cycle of delinquencies”. “We should put an end (to) deliberate delinquencies in taxes,” he said.

On the additional obligation of P37 million in penalties and surcharges, Espino said Team Energy officials have to clear the matter first with the Napocor.

The provincial government and Team Energy later agreed on separate memo-agreements to be prepared, one for the payment of the principal obligation and another for the penalties and surcharges.

As an additional condition, Espino also asked Team Energy to give preferential employment treatment to qualified workers in the host community or neighboring towns.

The 1000 MW Sual Coal power plant was constructed in 1994 through a build-operate-transfer scheme during the administration of then Pres. Fidel V. Ramos

The power plant has already been managed by at least three contractors since it started operations in 1998. The contractors include the Hopewell (1998), Southern Corporation (2001) and Mirant in 2003