Trail of Power Mess Leads to Ramos

Name of Plant :	75 MW Ambuklao Hydroelectric Power Plant (A11)
Name of IPP :	MERALCO Industrial Engineering Services Corporation (MlESCOR)/
	Morrison-Knudsen Corporation/Mindanao Shipbuilding Corporation (MSC)/
	J.G.S. International Corporation
Contract Type :	Rehabilitate-Operate-Leaseback (ROL)/PPA/Solicited
Status of Plant :	ROL Contract Terminated / Plant Under Preservation
Cooperation Period :	Not Applicable (Terminated as of July 2000)

Nature of Issue	Issue	Recommendation
Unresolved claims and disputes	On July 5, 2000, NPC informed MIESCOR that it is terminating the contract , because of the latter's abandonment of the plant, large project slippage and failure to accomplish any major portion of the scope of work.under the contract.	Outstanding issues with Binga Hydroelectric Plant, Inc. (BHEPI) will have to be resolved before any future plans for AHEP (i.e., ROL contract or priyatization) will be undertaken by NPC.

	Presently, AHEP is under preservation, not presently operating due to dredging problems and its complete rehabilitation has been delayed pending the settlement of the dispute between NPC and MIESCOR.	In the view of the long-standing dispute between NPC and BHEPI, DOJ should look into the issue of unresolved claims and dispute.