DoE revokes energy contracts

Technicians conduct tests at a proposed water impounding site helping determine whether or not heavier structures could be built on them.

BAGUIO CITY — The Department of Energy (DoE) cancels three of the four hydroenergy service contracts (HSC) granted to Goldlink Global Energy Corp. after establishing that its contract area overlaps with the facilities of the city-owned Asin mini-hydroelectric plant.

DoE officials said the company committed serious misrepresentation in pursuing the contracts.

In a seven-page resolution signed 4 December this year by Energy Secretary Alfonso Cusi, the DoE canceled HSC numbered 2014-01-364 for Goldlink’s Sallapan project, 2014-01-365 for Nangalisan and 2013-05-249 in Tadiangan all in Tuba, Benguet. The ruling favored the Baguio city government that in 2015 sought the annulment of the three HSC along with Goldlink’s Kanggas project numbered 2013-05-248 which was cleared earlier by the DoE for being outside the Asin hydropower systems.

The city government, represented by lawyer Isagani Liporada of the City Legal Office, contended the HSC covered the Asin River from which the city’s three mini-plants source their water and, therefore, will cause adverse effects on the operation of the existing plants.

It further charged Goldlink of “surreptitiously concealing from the DoE the existence of the Asin Plants within the areas subject of its application” to obtain the contracts.

Goldlink meanwhile maintained the HSC were valid and “separate and distinct” from the Asin plants as it also questioned the “legal personality” of the city in challenging their contract in view of the fact that the city had no HSC under its own name to operate the Asin plants.

However, the DoE established that the city “possesses legal personality to be a complainant and impugn the subject HSC… considering (its) legal and economic interests over the Asin Plants…”

The DoE also proved the claim on overlapping facilities and the intent of Goldlink to misrepresent and mislead the department into approving the HSC.

“The lone weir of Tadiangan HSC (of Goldlink) overlaps with one of the weir sites for Asin Plant 1; the approved contract area for Tadiangan HSC was changed without prior DoE approval as determined from Goldlink’s Feasibility Study where Goldlink proposed four weirs that overlap with the weirs of the existing Asin Plant 1;

“The awardee Sallapan HSC of Goldlink overlaps with the weirs of Asin Plant 2; and the awarded Nangalisan HSC overlaps with Asin Plant 3.”