Salceda seeks debt write-off for troubled Aleco

By Manuel T. Ugalde

LEGAZPI CITY --- Presidential Legislative Liaison Office Secretary Joey Salceda is pushing for the condonation of nearly P7 billion in debts incurred by the Albay Electric Cooperative (Aleco), saying debt relief should come first before a new solution is pursued to rehabilitate the troubled power cooperative serving about 250,000 consumers in the province.

The proposal came amid continuing efforts by Albay leaders and lawmakers to find a lasting solution to Aleco’s financial and operational woes.

Salceda, a former Albay governor, said the P1.2 billion in funds already made available through the General Appropriations Act should first be fully utilized as part of efforts to improve Aleco’s power distribution system.

He said the proposed debt condonation could help create a more viable financial position for the cooperative and pave the way for a more sustainable rehabilitation program.

Ako Bicol party-list Rep. Alfredo Garbin echoed Salceda’s position, saying P400 million of the P1.2-billion allocation has already been used to improve substations in Albay’s Third District.

The remaining P800 million, Garbin said, is intended for substation improvements in the First and Second Districts.

The latest proposal comes as local leaders remain divided over the best way to restore Aleco to stable operations.

In 2014, the National Electrification Administration (NEA) entered into a concession agreement with San Miguel Corporation (SMC) for the rehabilitation of Aleco. The agreement initially covered 25 years but was terminated in 2022, after then-Gov. Noel Rosal pushed for its cancellation following an Aleco consumers’ assembly.

Efforts to pursue another private-sector arrangement surfaced after the May 2025 elections, when newly elected Albay Second District Rep. Carlos Loria initiated discussions with Manila Electric Co. (Meralco) regarding a possible rehabilitation program for Aleco.

Several local leaders and Albay lawmakers, however, questioned the initiative, saying the negotiations were being pursued solely by Loria.

Another group has been advocating a cooperative-to-cooperative, or “Coop-to-Coop,” arrangement led by Professor Virgilio Perdigon. The group has said the proposal received the support of the Regional Development Council when Salceda was its chairman.

Meanwhile, reports by Bilyonaryo News and the Manila Bulletin have cited Meralco’s interest in assisting Aleco amid the ongoing rehabilitation efforts being undertaken by NEA.

The current rehabilitation program is partly supported by the P1.2 billion in government funds secured during the congressional appropriations process.

Rosal, meanwhile, said any move to enter into another concession agreement with Meralco should be decided by the Aleco board and concurred in by the cooperative’s consumers’ assembly.

He also denied giving his imprimatur to negotiations with Meralco, contrary to an earlier claim attributed to Loria.

Rosal said Aleco’s debt to its power supplier was less than P3 billion before the 2014 concession agreement with SMC but ballooned to more than P6 billion during the eight-year concession period.

The continuing debate over Aleco’s debt, rehabilitation funds and possible private-sector participation underscores the urgent need for a long-term solution to the cooperative’s financial and operational problems, which continue to affect hundreds of thousands of consumers across Albay.