Aside from the disturbing issues of government take-over of the country’s largest distribution utility firm, there are also never ending attempts to amend the Electric Power Industry Reform Act (EPIRA).

The latter, investors admit, make them fidgety because their entry has been largely anchored on the policies set forth under EPIRA.

International Finance Corporation (IFC)-Philippines Resident Representative Jesse O. Ang opined that it would be better for the government to allow seamless implementation of the EPIRA as has already been started, instead of endlessly attempting to amend some of its provisions.

"There’s no room tinkering it (EPIRA), we just finish it. That’s my personal view which is similar to the industry’s view because amending it will create uncertainties," he stressed.

Another multilateral lending firm Asian Development Bank (ADB), which also actively extended financing to the privatized assets of the National Power Corporation, has been urging the government to commit to let EPIRA work first so that investors would be able to settle in a more stable business environment.

Despite President Arroyo acknowledging the stand of the investors and the lenders, both houses of Congress have not stopped deliberating proposals to amend various provisions of the EPIRA.

Thomas Crouch, who is now ADB’s deputy director general for Southeast Asia Department, said previously that "there is always a risk attending to piece of existing legislation that is broadly working to put it back on the floor and reopened…many issues maybe reopened and become hostage to some political process."

Meanwhile, in an interview with SN Power Executive Vice President for Asia Einar Stenstadvold in Norway, he emphasized that the robust policy framework of EPIRA has been their enticement in pouring investments in the Philippines.

"There has to be some sense of stability in the business environment. It does not give enough comfort to our investments when there are attempts to change the policies, be those that deal with contracts or prices," he said.

SN Power logged three specific reasons why it was attracted to invest in the Philippines and are roughly hinged on the successful implementation of the power industry reform law.

Firstly, it noted PSALM’s gained experience in packaging a marketable and financeable portfolio of assets. Second, the company put much faith on the establishment of the Wholesale Electricity Spot Market (WESM) as alternative market for their capacity; and thirdly, the improved macroeconomic growth figures registered by the country.

"But it is more on the factors at the micro-level that we have considered," Mr. Stenstadvold has emphasized.(MMV)