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A consumer watchdog group has questioned the Northern Davao Electric Cooperative (NORDECO) over an alleged lease agreement with a private firm, citing concerns about transparency and accountability in a multimillion-peso power project in the Island Garden City of Samal (IGaCoS).
The Davao Consumer Movement (DCM) said it obtained screenshots of what appears to be a leaked operating lease agreement between NORDECO and Mikro-Tech Capital Corp. The document reportedly covers several key power assets, including a 69-kilovolt (kV) overhead sub-transmission line, a 69kV submarine cable, and a 20-megavolt ampere (MVA) substation in Samal.
According to the group, the agreement also includes the operation and maintenance of electricity distribution facilities on the island.
Call For Transparency
DCM said the document, allegedly signed by acting General Manager Elvera Alngog and Board Vice Chairperson Dr. Alejandro C. Rodriguez, shows that NORDECO committed to pay Mikro-Tech around ₱150 million from 2023 to 2027, and ₱175 million from 2028 to 2032.
“While we cannot yet verify the authenticity of this document, its contents are alarming. NORDECO has never disclosed any information about this project to the public. Given its scale and impact on residents and businesses in Samal, transparency should have been non-negotiable,” DCM said in a statement.
The group added that consumers have long been aware that NORDECO borrowed ₱1 billion to fund the Samal submarine cable project, but the cooperative has yet to provide clear updates about its progress.
DCM expressed concern that NORDECO may already be paying the private firm despite the submarine cable’s continued non-operation.
Lease Deal Full Of Red Flags
“The alleged document suggests that NORDECO has been paying the firm since 2023, despite the absence of a functioning submarine cable connecting Samal to the main grid. By 2025, NORDECO may have already released around ₱450 million without delivering tangible progress,” the group said.
The watchdog described the supposed deal as “alarming,” saying that any project of such magnitude should have been disclosed to consumers and local stakeholders from the outset.
The issue, DCM added, bolsters the Davao del Norte Provincial Government’s call for a Senate Blue Ribbon Committee investigation into the Samal submarine cable project.
The call was made during a joint meeting of the Provincial Development Council and the Provincial Peace and Order Council in September 2025. “Whether they have the same document or other undisclosed information remains unclear,” DCM said.
Unanswered Questions
The group raised several questions for NORDECO to address, including whether the deal was formally approved by the cooperative’s board of directors, whether it was ratified by member-consumer owners, and whether appointed board members had the authority to enter into such a large financial commitment.
“And most importantly: where is the submarine cable? If NORDECO has indeed been paying since 2023, then consumers have been carrying this burden for years. This could explain the persistently high power rates. How else is NORDECO financing its loan?” the statement read.
DCM urged NORDECO to release a complete and transparent financial report on its ₱1-billion loan and related expenditures. The group said the cooperative’s brief public statements and denials have not eased public concern.
As of press time, NORDECO has not issued an official response to the group’s claims.
Source:
https://www.sunstar.com.ph/davao/group-slams-nordeco-over-wesm-suspension
