The Sangguniang Panlalawigan (SP) of Bohol has decided to request Salcon Power Corporation (SPC) to hold in abeyance its plan to sell its shares in Bohol Light Company Inc. (BLCI), as the provincial government reconsiders its earlier decision to decline the purchase offer.
The move comes after a Committee of the Whole meeting held on August 1, which brought together key stakeholders to discuss the potential acquisition of SPC’s 70 percent stake in BLCI.
Acting Vice Governor Benjie Arcamo revealed the outcome of the meeting in an interview with DYTR on August 2.
The provincial government was initially given until June 30, 2024, to exercise its right of first refusal on SPC’s stake.
However, the SP now seeks an extension of this 60-day period to allow for a more thorough review of the proposed transaction.
“We need more time to make a sound decision on this matter,” Arcamo said. “The offer from SPC did not include a specific price tag, which made it difficult for us to properly evaluate the proposal.”
The meeting included representatives from the Center for Government Accountability and Review (CGAR), Capitol officials, BLCI, and various non-governmental organizations.
Lawyer Jordan Pizzaras questioned the provincial government’s initial decision to decline SPC’s offer.
SPC has expressed its intention to sell its stake to More Power Corporation if the provincial government does not exercise its right of first refusal.
The value of SPC’s shares in BLCI is reportedly ₱2.94 per share, according to Arcamo.
SP’s reconsideration comes amidst concerns about the future of BLCI, whose franchise is set to expire in October 2025.
Arcamo expressed support for the renewal of BLCI’s franchise, which would require approval from Congress.
“Congressional representatives have no reason to block the renewal of the franchise,” Arcamo said.
He added that the BLCI appears to be profitable based on dividends distributed to stakeholders, raising questions about SPC’s motivation to sell its shares at this time.
The potential purchase of BLCI shares by the provincial government has sparked debate about the financial implications and public interest considerations.
Board Member Tomas Abapo Jr. suggested that the SP review the proposal while requesting SPC to hold the sale in abeyance.
Retired RTC Judge Suceso Arcamo, a member of CGAR, pointed out the importance of public consultation in the decision-making process.
“It’s crucial that we hear from the people, especially BLCI consumers, about their sentiments on this issue,” he said.
The SP has welcomed the suggestion for public hearings and plans to incorporate this into their review process.
Meanwhile, the Provincial Internal Audit Office (PIAO) has clarified concerns raised by CGAR regarding the accounting of ₱22.5 million involved in the 2002 sale of the Provincial Public Utilities Department (PPUD) to SPC.
PIAO chief May Limbaga assured that the funds are accounted for and were used to purchase 30 percent of BLCI shares.
The Local Finance Committee (LFC) of the provincial government, led by Provincial Administrator Asteria Caberte, maintains its initial recommendation to decline the offer to purchase SPC’s 70 percent share in BLCI.
Provincial Legal Officer Handel Lagunay cited concerns about the government’s financial and technical capabilities to sustain BLCI’s operations as primary reasons for the recommendation.
However, Lagunay noted that the LFC remains open to other options if there are changes in the decision of Capitol officials.
“We are willing to consider alternatives, especially given the various options presented by resource persons during the committee hearing,” he said.
SP plans to conduct a comprehensive review of the proposal to buy back the 70 percent stake in BLCI, taking into account the complex history of the transaction dating back to 2001 under former Governor Rene Relampagos’ administration.
Reports said the provincial government faces the challenge of balancing financial considerations with public interest in determining the future ownership and management of BLCI.
Reports further noted that the outcome of the decision could have significant implications for power distribution and economic development in Bohol.
SP has temporarily recessed its proceedings to allow for further deliberation on the said crucial matter.