ZAMBOANGA CITY, Philippines – The management of Zamboanga City Electric Cooperative, Inc. (Zamcelco) successfully negotiated for a five-year restructuring program of the huge unpaid obligation incurred by its previous hierarchy who were earlier dismissed from their post by the National Electrification Administration (NEA).

Electrical Engineer Jesus Y. Castro, a native of Tarlac who was installed by NEA initially as cooperative project supervisor and lately as acting general manager, said the company accumulated a total debt of P817 million from the National Power Corporation (NPC) or Power Sector Asset and Liabilities Management (PSALM) Corporation as of December, 2010.

Castro, former general manager of the Zamboanga del Sur Electric Cooperative II (Zamsureco II) based in Ipil, Zamboanga Sibugay where he earned several NEA awards and citations for competent management, noted that the Zamcelco’s P817 million unsettled obligation to PSALM is broken down to P123 million to value-added tax portion, P118 million to previous restructured account, and P576 million which represented the company’s unpaid obligation for four months last year plus accrued interest.

The restructured plan, which took effect last January when Castro first assumed as project supervisor, calls for Zamcelco to pay to the NPC-PSALM an amortization of P17.7 million every month for the first year, P15.5 million for the second year, and P11.8 million for the remaining three years.

Castro, who as Zamsureco II chief, who garnered NEA’s Hall of Fame award for having been named the country’s Most Outstanding General Manager for five consecutive years, said the cooperative paid an amortization fee of P99 million from January to June, 2011.

According to Castro, Zamcelco, as of June 2011, earns a monthly gross income of P190 million, which he said is barely enough to settle its monthly power cost of P185.6 million – P113.9 million to NPC-PSALM for power generation charge and P54 million for transmission cost to National Grid Corporation of the Philippines (NGCP) – and P17.7 million for restructured loan amortization.

And to cover the deficit, Castro reiterated his strong call for an intensified collection of the company’s receivables and uncollected arrears of P279 million from delinquent member-consumers even as he unilaterally increased its collection efficiency to 110 percent over its current monthly gross income of P190 million.

Castro explained that if the coop realizes its 110 percent collection efficiency, henceforth, it will be able to raise its current gross monthly income to P209 million, thus enabling it to meet its monthly operation expenses and other obligations.