Daneco conflict affects Igacos econ, exec says

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Wednesday, February 12, 2014

THE economic potentials of the Island Garden City of Samal (Igacos) is being held back by the internal conflict at the Davao del Norte Electric Cooperative (Daneco), an official said.

Igacos city administrator Cleto Bravo Gales Jr., who guested in Tuesday's edition of the Davao Business Forum at Derm Path. said the economic development of Samal is being held "hostage" by power woes brought about by the internal conflict between Daneco-Cooperative Development Authority (CDA) and Daneco-National Electrification Administration (NEA).

"Currently, the island's power is being supplied through the more than 30-year-old submarine cable, installed between barangay Pampangga, Davao City and Caliclic, Samal, whose capacity is five megawatts (MW)," he said, adding that the cable has already experienced five major faults since it was established based on the reports of Daneco.


Gales said the cable needs immediate replacement since according to the electric cooperative, it may bug down anytime.

He said the situation triggered negotiations between Davao Light and Power Company (DLPC) and Daneco in the transfer of service operations.

The negotiations resulted to the creation of a draft of the Memorandum of Agreement (MOA) between the two power distribution companies.

Gales said the draft was submitted to NEA in 2012, but for several months NEA did not act on it after hearing that "some people within Daneco were working for the emancipation of Daneco from NEA to become a registered full-fledged coop under CDA."

"The politics between Daneco-NEA and Daneco-CDA is holding hostage the MOA between Daneco and DLPC," he said.

Gales said the "island is suffering and the people are confused brought about by the conflict."

"We told the Mindanao Development Authority and the National Economic Development Authority that President Benigno S. Aquino III has to come in, it is only the President who can resolve this," he said.

Gales said they do not mind whoever takes over Daneco as long as they will be able to address Samal's power woes.

"If the problem is not resolved and the submarine cable will bug down then Samal will be paralyzed," he said.

Gales said they are "desperate" to welcome power investors in order to address the island's power problem.

Published in the Sun.Star Davao newspaper on February 12, 2014.


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