GENERAL SANTOS CITY — Prime Holdings Inc.’s power distribution company, Monte Oro Resources & Energy Inc. (MORE Power), under Prime Holdings Inc., has indicated that it expects to assume a majority role in the management and operations of the South Cotabato II Electric Cooperative (SOCOTECO II) should a proposed joint venture move forward.
Prime Holdings spokesperson Jonathan Cabrera said the proposed joint venture would follow a 70–30 ownership structure, with MORE Power holding the majority stake. Under this arrangement, MORE Power would eventually take the lead in operating and managing SOCOTECO II.
Cabrera explained that the proposed structure is similar to Prime Holdings’ previous experience in Negros Occidental, where Prime Electric acquired the distribution assets of the Central Negros Electric Cooperative (CENECO).
Joint entity formed
Following that transaction, a joint entity — Negros Electric and Power Corporation (Negros Power) — was formed, with Prime Electric holding 70 percent ownership and CENECO retaining 30 percent.
In a recorded interview, Cabrera said the rationale behind majority operational control is tied to the scale of investment made by the private partner.
He noted that Prime Electric not only acquired assets but also infused additional capital expenditures (CAPEX) to rehabilitate and expand the distribution system.
From the company’s perspective, Cabrera said, it is standard practice for the majority investor to oversee operations and management, particularly when substantial capital investment is involved.
He added that Prime Holdings entered such partnerships due to perceived inefficiencies in previous operational setups, arguing that it would be impractical for the minority partner to retain control while the majority partner bears the financial risk and investment burden.
Service delivery improved
Cabrera further claimed that service delivery improved after Prime Electric assumed operational control in Negros, citing this as an example of how similar arrangements could potentially benefit SOCOTECO II consumers.
However, no independent performance data were presented during the interview to support these claims.
On the issue of corporate identity, Cabrera said discussions on renaming SOCOTECO II have not yet formally begun. He acknowledged, however, that it could be considered in the future.
He emphasized that from the company’s standpoint, the name of the utility is secondary to service quality and system performance.
MP Holdings and Prime Electric consortium
Earlier reports indicate that Ignite Power and Energy Holdings Co., a consortium composed of MP Holdings Inc. — owned by former Senator Manny Pacquiao — and Prime Electric, is proposing to rename the local electric cooperative MORE South Cotabato Electric and Power Corporation should the joint venture proceed.
The proposed joint venture has drawn public attention, particularly among SOCOTECO II member-consumers, as electric cooperatives are traditionally owned by their members.