5-8 AUGUST 2002
Trail of Power Mess Leads to Ramos

[SOURCE: IPP REVIEW COMMITTEE REPORT]

Name of Plant : Navotas Gas Turbine Power Plant Unit 1-3 (A1)  
Name of IPP : Mirant Philippines, Inc.  
Contract Type : Build-Operate-Transfer/Energy Conversion Agreement/Solicited  
Status of Plant : Operating  
Cooperation Period : 12 years (January 1991 - January 2003)  
     
Nature of Issue Issue Recommendation
Cost Escalation Interpretation of energy formula under clause 5.2 of eight schedule NPC Management to recover overpayment due to erroneous interpretation and application of formula
     
  Fuel bonus "0 (Vg-Vt)" is limited to the dollar component consistent with sample computation, no peso component. The proponent, however, charged NPC also for the peso component.  
     
  Effective Sept. 25 - Oct. 25, 2001 billing, no payment was made on fuel bonuses on the peso component.  


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