NEA starts review of Primelectric-CENECO joint venture agreement

State-run National Electrification Administration (NEA) said Monday it started the assessment of the joint venture agreement between Primelectric Holdings Inc. and Central Negros Electric Cooperative Inc. (CENECO).

The proposed joint venture under Negros Electric Power Corp. (NEPC) involves a P2.1-billion investment that aims to promote quality service to consumers.

NEA administrator Antonio Almeda said in a hearing the board would look into CENECO’s  capitalization and viability.

He said the board would also address the concerns of those opposing the JVA.

“I hope we can address the concerns of the oppositors. We must also consider them. Regarding the participation of the member-consumer-owners, it has been concluded during the plebiscite, so we will put this into motion with all the required legal objectivity,” Almeda said.

Primelectric, a sister company of businessman Enrique Razon Jr.’s MORE Electric and Power Corp., and CENECO presented before the NEA early this month the joint venture plan to strengthen its service to consumers.

“This venture seeks to magnify the electric industry in Central Negros by not just streamlining the internal and external operations of concerned parties but also rehabilitating and modernizing the distribution system, which is deemed crucial in providing quality service to our consumers,” Primelectric and NEPC president Roel Castro said.

CENECO acting general manager Arnel Lapore said the JVA “strongly” supports the NEA’s goal to achieve efficient service for all consumers.

“I’m one with NEA in facilitating the service for the benefit of our consumers. That’s why I strongly support and cooperate through this JVA to ensure we deliver quality operations internally and externally,” Lapore said.

Castro said during the meeting the NEPC’s target P2.1 billion in capital expenditures would bring cutting-edge and top-of-the-line systems for a better consumer experience.

“We need to rehabilitate the system because if you don’t put in the additional P2-billion investment or even bigger, you will be inheriting a distribution system that is just the same as now that is inefficient. That’s why we have to put in P2.1 billion to start