Ignite Power open to Socoteco 2 deal safeguards

MANILA, Philippines — Ignite Power is open to an anti-dilution provision in its proposed deal with South Cotabato II Electric Cooperative (Socoteco 2) to protect the utility’s board representation and voting rights.

Roel Castro, president and CEO of Razon-led Primelectric Holdings, said Ignite Power is willing to incorporate the provision into the joint venture amid calls from a business group for stronger safeguards in the proposed partnership.

“We look forward to working closely with the Socoteco 2 board of directors and key stakeholders to ensure that the final agreements reflect these shared commitments and foster a sustainable, transparent partnership,” Castro said.

Ignite Power, a joint venture between Primelectric and boxing icon Manny Pacquiao’s MP Holdings, has proposed investing in modernizing Socoteco 2’s aging power distribution network.

While supporting the proposed joint venture, the General Santos City Chamber of Commerce and Industry Inc. (GSCCCII) called for strong safeguards to protect the cooperative’s reported 30-percent stake in the partnership.

The rights and economic interests of consumers must be fully protected, the chamber said.

GSCCCII president Miguel Rene Dominguez said it was “extremely important” to have a “white knight” to help the financially troubled cooperative amid concerns over a potential power supply crunch with the onset of El Niño.

“The most expensive electricity is having no electricity at all,” Dominguez said, calling for the plebiscite to proceed to determine whether Socoteco 2 can move forward with its partnership with the power firm.

He emphasized that the city’s business sector saw the need to act before power supply problems further hurt the local economy.

“We know that things would be very difficult if it reached a point where service was no longer good because the jobs themselves in GenSan and Sarangani – the factories, manufacturing and so on – could be put into a major crisis,” Dominguez said.