Ignite Power-SOCOTECO II Joint Venture Gets Coop Member Backing

Ignite Power’s proposed joint venture with South Cotabato II Electric Cooperative (SOCOTECO II) received backing from the 32,000 member-consumer-owners (MCOs) of the electric cooperative. In a statement on Monday, Ignite Power said the approval of SOCOTECO II’s members happened during the cooperative's 43rd Annual General Membership Assembly last Saturday, July 25, which was held simultaneously in four venues across General Santos City and Sarangani Province. The development, Ignite Power said, is a step closer to a partnership aimed at modernizing the electric cooperative’s aging distribution system. Ignite Power, a partnership between Razon-led Primelectric Holdings Inc. and Manny Pacquiao's MP Holdings, said the MCOs also ratified a board resolution authorizing SOCOTECO II to enter into the conditional joint venture agreement (CJVA) with Ignite Power. SOCOTECO II board president Elenito Senit said he signed the CJVA with Ignite Power on July 23 after receiving authority from the cooperative's board of directors. Senit said the agreement would help address SOCOTECO II's long-standing financial and technical challenges by securing investments needed to rehabilitate, expand, and modernize its power distribution facilities, improve service reliability, and strengthen the cooperative's long-term financial viability. Ignite Power, meanwhile, said the MCOs also approved a separate resolution calling for the immediate conduct of a plebiscite, where MCOs would vote on the proposed partnership before it becomes final and executory. Senit said SOCOTECO II would first coordinate with the National Electrification Administration (NEA) and await the issuance of guidelines before finalizing the schedule and mechanics of the vote. Under the proposed joint venture, Ignite Power said it would infuse fresh capital to rehabilitate aging distribution facilities, expand substations and feeder capacities, replace obsolete equipment, and modernize the power distribution network serving General Santos City, Sarangani Province, and nearby areas. During the assembly, Sarangani Governor Ruel Pacquiao called for closer collaboration between the power sector and the national government agencies to keep electricity rates affordable in the province. "Investors choose locations where electricity is reliable, stable, and affordable," said Pacquiao. "We must work together to identify practical solutions that will provide consumers with dependable electricity at a reasonable cost through transparency, efficiency, and responsible governance," said the governor. —KG, GMA News