Stalemate over Morupule B's US$800m expansion goes to OP

The pension fund wants a piece of the action
The pension fund wants a piece of the action

The country’s highest office has entered the four-year deadlock over whether government should go ahead with the US$800 million (P8.6 billion) expansion of Morupule B; several highly placed insiders have confirmed to BusinessWeek.

Two Asian mega-corps – Marubeni from Japan and Posco from South Korea – won the tender to expand Morupule B by 300MW in 2015 and were due to have begun work in January 2017 on a 42-month contract.

While Morupule B currently has four units capable of producing 600MW, it has never produced that much due to frequent breakdowns and is due to undergo intensive repairs over the next four years. The Asian joint venture meanwhile has still not kicked off due to a dispute over a government support agreement required for the two firms to reach financial close.

Editor's Comment
CoA brings sanity to DIS/DCEC long-standing feud

This decision follows the raiding of the office of the former Director General of the DCEC, Tymon Katlholo early 2022 and his staff officer by the DIS operatives who reportedly took files that they had targeted.After all back and forth arguments, the CoA has set the record straight giving an invaluable lesson to the DIS that it was no super security organ and it does not have any powers to cogently supervise other security organs including the...

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