Trail of Power Mess Leads to Ramos

Name of Plant :	Caliraya-Botocan-Kalayaan (CBK) Project (A33)
Name of IPP :	Industrias Metalurgicas Pescarmona S.A., CBK Power Company Ltd.
Contract Type :	Build-Rehabilitate-Operate-Transfer/Power Purchase Agreement/Unsolicited
Status of Plant :	Partly operational
Cooperation Period :	25 years (February 2000 - February 2025)

Nature of Issue	Issue	Recommendation
Project Approval	Existence of a performance undertaking (PU) when the Terms of Reference states that no PU is to be issued to the project.	The propriety and legality of the amedned terms of the contract calls for further investigation.

		If entered into without legal authroity, the appropriate administrative, civil or criminal action will be determined.
Existence of supplemental agreements	It has to be determined whether the supplemental agreements which provided for a pre-completion payment of the CBK plant increased Philippine government exposure.	NPC management to provide all Supplemental Agreements and DOJ to ascertain whether the Supplemental Agreements were entered into in accordance with government requirements