"ADB's power privatization program will only lure us deeper into total darkness!" cried Freedom from Debt Coalition as it held a demonstration before the Asian Development Bank's (ADB) main office in ADB Avenue, Ortigas Center, while lugging a huge, black light bulb to symbolize the country's bleak future if high power rates imposed upon, and shouldered by the Filipino people remain unfettered.
"The country is in bad shape, and our people's suffering is more palpable than ever," according to FDC Vice President Wilson Fortaleza. "Filipino people now pay for P9/kwh-P9.50/kwh, from only P5/kwh prior to the passage of Electric Power Industry Reform Act (EPIRA), while National Power Corporation (NPC) and government debts continue to balloon because of onerous power projects," he continued.
"ADB has a lot to do with the accelerating suffering of the Filipino people. It financed, designed, and pushed for the passage of EPIRA, which mandates the privatization of the power industry," explained Fortaleza.
In 1998, ADB approved the Power Sector Restructuring Program (PSRP) loan amounting to $300 million, which outlined the policy prescription for privatization and restructuring of the power industry. The release of two-thirds (2/3) of the PSRP loan depended on the passage of EPIRA in 2001.
EPIRA mandates the restructuring of the power industry and the privatization of NPC, the transfer of P200 billion NPC debts to the national government, the condonation of debts of the electric cooperatives, removal of cross subsidies and the collection of universal charge, which include charging electricity consumers for stranded debts of NPC and stranded contract costs of NPC, arising from onerous contracts with independent power producers (IPPs).
Even if on its face, EPIRA obviously passes on NPC's debt burdens to the people and intensifies monopolistic control and practice by few power companies by allowing for a mere handful to gain a stranglehold over the industry, ADB succeeded in compelling the Philippine government to promulgate EPIRA because some $550 million -- $200 million from ADB and JEXIM Bank for the interconnection project and $350 million ADB guarantee for NPC bonds in 2002 -- was also hinged on its passage.
"ADB's evil influence did not weaken through time. In fact, the impending P1.73/kWh increase in Meralco's electricity charges is highly attributable to the flawed wholesale electricity spot market (WESM) it prescribes. This was petitioned by the biggest distribution utility in the country for collection of its under-recoveries in December 2006 and January 2007 in generation costs due to increase in WESM prices and system losses," Fortaleza explained.
Instead of delivering its promised low power rates, WESM was found riddled with price manipulations during its first three months of operation consequently increasing the generation rates by about P1/kWh.
"ADB has left our country little breathing room, if at all, in our own affairs. Its suggested policies for reforms are tainted with its own interests alone. We demand that it leave the country, cease meddling in our affairs and cancel illegitimate debts from onerous power projects such as IPP contracts. The suffering must stop now," Fortaleza suggested.
"The ADB has the gall to claim it is owned by its member countries, and that it works towards improving the welfare of their people. But mere common sense dictates that the increases it imposes in support of big businesses and profiteers are unjust to a people who live in substandard conditions. This callousness must be made known, and their loathsome propensity for gains at the expense of everything else must be stopped," the FDC officer said.
Aptly, as ADB and government officials proceed to Kyoto, Japan this coming May 6 for the 40th ADB Annual Governors Meeting, FDC said that anti-debt and anti-privatization advocacy groups will make sure that the Filipino peoples' protests against ADB's power privatization program will resound persistently until it deafens and earns due attention and regard.
- Freedom from Debt Coalition
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