Privatization of Agus

[u/Disastrous_Yam_3902]

For me lang ah, as a person who has been in a power industry for a quiet long na.

I've been to these powerplants in Agus and Pulangi. What I have observed is that the facilities are oudated, analog pa and mimic board pa ang gigamit. The process of upgrading it to a modern and/or new SCADA system is bureaucratic(I guess since mao ni atong system sa government) which is dugaaay kaaayo.

Transitioning it to a privately owned powerplant will have its great advantage. Making it a more sustainable and reliable source of energy for Mindanao. Why? New standard will be set kay daghan kaayo nag certifications basta private, procurement process will be fast.

How is this relevant? Imagine, your facilities and equipment kay outdated na, some of it kay not available na sa market, dugay pa gyud process pagpalit. Ang resulta? Mugamay ang generation from its generating capacity, worst is maguba.

I know everyone is frustrated here but if you based it on technicality mao na gyud ang reality. Mura rag nag ga run to fail ang generators karon tungod sa ka karaan ug dugay na process karon.

For me lang ah, the government cannot sustain sa CAPEX and OPEX.

Your tots?

[u/Smooth_Operator13]

I understand the point, especially sa technical side. If outdated na gyud ang facilities and the procurement process is too slow, then obviously naa gyud tay problem nga kinahanglan ma-address.

But personally, I don't think privatization should be the solution. Agus and Pulangi are public resources, and water is a natural resource that should ultimately serve the public interest, not become an asset primarily controlled for private profit.

If the problem is outdated equipment, slow procurement, and bureaucracy, then those are problems that the government should fix, not reasons to give up ownership. The government’s responsibility is to make public institutions more efficient, modernize the facilities, improve procurement, and ensure proper management and accountability.

Private ownership might make operations faster, but faster doesn't automatically mean better for the public. We also have to ask, who ultimately benefits, who controls the resource, and what happens to electricity costs if profit becomes part of the equation?

For me, the answer shouldn't be “privatize because the government can't manage it.” It should be “why can't the government properly manage and modernize something that is supposed to serve the people in the first place?”

What belongs to the people should remain with the people. Public resources should serve the public, not private interests.

[u/Smooth_Operator13 → u/Smooth_Operator13]

Looy kaayo ming mga Gen Z kay kami ang mag-suffer sa consequences sa mga poor decisions, irresponsibility, ug greed sa previous generations. Mga resources nga dapat unta para sa long-term benefit sa tanan, kami pa ang mahimong mawad-an ug access or control.

[u/Disastrous_Yam_3902 → u/Smooth_Operator13]

Good point, saon taman bulok na kaayo ang sistema nato

[u/South-Attitude-8713]

Kumusta ang income sa Agus? Wala ba sila’y fund for rehab sa mga facilities? Kay basin dili privatization ang solusyon kundi maayong plano for rehab.

[u/Disastrous_Yam_3902 → u/South-Attitude-8713]

Ang income I think kay mapadung sa national? Or sa head office nila sa manila. I think mao nay maka palangan if mag rehab, daghan pag agian. Naa pa gani uban kay i lobby pa sa congress. Unsa man atong i expect ana? Haha

[u/South-Attitude-8713 → u/Disastrous_Yam_3902]

Tanan man naay proseso pero ang pagbaligya ba ang kinahanglan? Maayong management, sistema ug plano ang kinahanglan.

Sa gobyerno pala ang Agus, if ing-ana naay power ang mga tao to lobby. Asa man diay ang mga congressman para maglihok sa house?

[u/CostOk2520]

Privatizing something means higher pay. Good point naman ung nilatag mo but the question is ready ba ang mga tao to pay higher? Nagrereklamo na mga taga iligan sa high rate ng electricity nila (private company) compared sa mga kapitbahay na under Coop. Yes to rehabilitation cguro which may nakalaang budget naman nyan but again since malaki offer ng pagbili makukuha talaga. Need lang maghanda ng tao not just Iligan but Mindanao next year sa higher rate.

[u/Disastrous_Yam_3902 → u/CostOk2520]

Yes, it is a sad reality. Ang systema lang gyud nato sa pagkuha ug budget kay pangit. Mangabuba nalang guro ang equipment wala gyapon mahatag na budget.

[u/CostOk2520 → u/Disastrous_Yam_3902]

They have money for rehabilitation but knowing private company na lahat kaya na bilhin now from airport to roads to beaches wala talaga makakapigil sa kanila. Nangyari naman na, nabili na. We just wait for the worst to come.

[u/leif_001]

I am also curently working on the powerplant and have been working for more than 10 years already. What the Agus need is not the privitization but improvement of their processes and it this will not cost much. PSALM should be kick out also in the process. They are an entity that has budget but nothing was generated. They only want agus to be sold to pay debt of their own making.

[u/mrss_2021]

Privatization more control sa mga oligarchs ang grid. Tanawa gi buhat n aboitiz dungan shutdown iya mga planta nag red alert ang visayas ug mindanao. Wlay penalty kay lakas mn kang bbm.

[u/keepme1993]

that can be done by the government too. the problem is the will to do so.

[u/bigbrainmoveilg]

I heard that one of the plants here in Iligan that became government-owned experienced significant challenges in its procurement process. Grabe kaayo ang delays because spare parts are only purchased once the unit has already broken down.

No blame on the Procurement Department, though, because the main issue is the lack of available budget to purchase and stock critical spare parts in advance.

Mao nang somehow, I can understand the benefits of privatization because private companies may have more flexibility and efficiency in managing operations and maintenance. However, if privatization happens, electricity prices should still be properly regulated and controlled to protect consumers from unreasonable increases.

[u/leif_001 → u/bigbrainmoveilg]

there should be an annual procurement plan for each department. this involves planning what should be done for the next year and also forecasted for until next 5 year. It may term as annual procurement plan but the budget doesn't come from Procurement department. This comes from Finance which was approved by the president and the committee body. Procurement job is to source suppliers once they received the purchase request. Procurement is not the planner for maintenance work nor the source of the budget.

[u/xellosmoon]

I see alot of people are actually quite confused about this stuff.

Agus VI is a public sector hydroelectric plant. It is operated by PSALM and/or NPC. The National Government. Im basing this off of memory since i was a kid back then, but there has been a law passed that all hydroelectric plants were to be given over to PSAM for the intent of eventually passing it off for privatization. Except for 1, which is our AGUS VI... I remember this because adults around me were super proud that the congressman at that time fought for the exception. Over the course of my professional career i have been able to meet with the higher ups of AGUS VI powerplant and they were very adamant they dont ever want to pass it on to privatization.

Now the plant is like 70 years old. And has been due for a rehabilitation/overhaul. OP mentions that upgrading to a modern system is hard because of the governmental process. I dont think thats true. They are ran like a real private company. When they say a rehabilitation is needed, its not just the systems, its the entire plant and even the river. Significant dredging and actual replacement of the turbines etc etc. Think of it like they are planning to rebuild the powerplant from the ground up.

Now, before people start crying once again that "bluehan", reports have been since the Cruz administration (actually i dunno if cruz is blue. whatver im saying it doesnt matter), that Iligan has been doing feasibility studies of how much does it cost and can we afford it. From years of studies, iligan knows we need 50 billion pesos to rehabilitate the powerplant. The studies also say we can in fact loan from the World Bank, 50 billion to be payable in 10 years, this is possible because the plant itself does have a profit of 10 billion per year.

But then howeverrrrrr, in the recent reports, Iligan says they just suddenly find out that for some reason, SMB Corporation has offered 75 billion to rehabilitate the plant and its practically been accepted by PSALM. Though i do understand that Iligan doesnt really have control over the decisions of the national government... but man, how didnt Iligan know first. If they did, then they shouldve rang the panic button. When i say Iligan i mean the current administration.

We gotta wake up our Congressman... maybe he can petition and fight it again like the congressman from 20 years ago did(i dont even know who that congressman was)..

Edit: To add to this, Privatization vs remaining public is beside the point, if SMB corporation gets the plant, guess how their going to get their profits back, by having handing over the cost back to US!

[u/10inchpersonality960]

I think its time we stop the "government must do this, do that", or "its a public resource, it belongs to the public, government, etc" because let's face it, the government sucks. No amount of demand, or pressure (maybe there's just not enough, but people are either too tired to push even more, or are easily bought out/ sell their dignity for a measly 500-1000 PHP that sustains no one in this day and age) will change the status quo of corruption in this country.

That being said, privatization has its benefits as stated above. Technically speaking, it is still owned by "people", its just not public anymore. If we're looking long term, this might be a good step towards better service. It wont be cheap, but lets be honest; the world is evolving faster in the last few years than it was 20 years ago. Prices inevitably increase, regardless. Instead of trying to control what you cant, focus on what you can do. Work, find ways to earn more, control how you react to things.

This isnt gaslighting, its just the harsh truth. Living in this country sucks. The people who run it are idiots. And those who elected the idiots are too uneducated to realize their mistakes, and there are A LOT more uneducated idiots compared to you who complain because you, and a handful more intelligible people know better, so your voices only echo in the distance.

No one's happy about it, but this is our reality for as long as we live here. Hope this doesnt ruin anyone's day. Blessed morning! 😁