The City Council unanimously passed a resolution to this effect following quick deliberations during a special session called Thursday afternoon by City Mayor Edward Hagedorn.
“We are looking at a supply gap of about 12 months before the electric cooperative is able to find an additional supplier and to establish a new power facility. This will have tremendous negative impact on the economy, particularly tourism,” said city legal counsel Agustin Rocamora.The city council noted complaints from residents, traders, and tourism-oriented business that the frequent brownouts have begun to affect many of the city's economy. Mayor Hagedorn said he may make a personal appeal to President Benigno Aquino III to address the problem.
Demand for electricity has faced rapid growth, fueled by tourism and a boom in the construction sector. Tourist arrivals in the capital has seen an unprecedented increase since February after the Puerto Princesa Underground River was adjudged one of the world’s seven new natural wonders during an Internet search launched by a Switzerland-based organization. The recent surge in power demand was also felt when Robinson's opened the biggest mall in the city in May, consuming at least 1 MW of power daily, along with other new hotels and business establishments.
The Palawan Electric Cooperative (Paleco), which distributes the main power supply for the mainland, launched late last year a bidding for a new 25-MW supply contract but the process was delayed by a two-month injunction by a local court after a bidder backed by a Korean group of renewable energy investors claimed that the bidding terms discriminated against potential renewable energy players. Power One Corp., had claimed that the cooperative’s decision to exclude the 12 percent value-added tax in the bid offers was disadvantageous to small renewable energy providers like itself. The injunction was lifted late May, allowing Paleco to proceed with its bidding. Paleco had admitted that it would take at least 10 months before a new supplier could set up a plant and provide the much needed additional electricity.
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