Power line’s removal to hurt RP investments

MANILA, Philippines - A court ruling ordering the dismantling of a major power line will hurt the country’s attractiveness, the Trade department Friday warned. The Energy department, meanwhile, said it was working to avert blackouts as it appeals the decision. Trade Secretary Peter B. Favila, in a statement, Friday said the ruling, which represents a win for residents of Dasmariñas Village in Makati City, provides a legal precedent for other private villages seeking to dismantle nearby power installations. "We are looking for ways to avert a crisis," Mr. Favila said. "During this time when there is a looming global financial crisis, the country should be avoiding problems such as a power shortage from happening." A Makati regional trial court last month ordered National Transmission Corp. (Transco) to de-energize the 230-kilovolt Sucat-Araneta-Balintawak line, citing a Supreme court ruling favoring Dasmariñas residents. Transco warned of massive blackouts and said power costs would go up once it is forced to source more expensive power from other plants. Energy Secretary Angelo T. Reyes said Transco had filed an urgent plea before the Makati court. "Imagine how many industries will be affected, including small and medium scale enterprises," Transco President Arthur N. Aguilar said. The Energy department said cutting the line would mean two to three hours of blackouts covering a major portion of Bulacan, parts of Caloocan City, the whole of Novaliches, Malabon and Valenzuela, most of Manila, most of Quezon City, and a portion of the Makati Business District. The Sucat-Araneta line is described as the shortest route for power delivery between power plants in South Luzon and a north sector load center in Metro Manila. Lower generation costs make power from South Luzon cheaper. National Power Corp. began construction of the line in 1996. The residents asked the trial court to issue a stay order, claiming the structures emitted hazardous radiation. The court agreed and issued a preliminary injunction in April 2000. The Court of Appeals reversed the decision, saying the lower court did not have jurisdiction over the matter since the structures in question were of national concern. It said Presidential Decree (PD) 1818 specifically prohibits courts from issuing injunctions against state infrastructure projects. On March 23, 2006, however, the Supreme Court ruled that the health and safety concerns of the residents overrode PD 1818. Transco, it said, could not cite the decree since no public consultations were made. The decision was affirmed on July 10, 2006. The residents, noting there was no action on the matter, filed for a motion of execution with the Makati trial court. - BusinessWorld