Kaltimex, Tawi-Tawi electric co-op ink debt restructuring deal

KALTIMEX RURAL ENERGY Corp., a Philippine subsidiary of Indonesian firm PT. Kaltimex Energy, has signed a debt restructuring agreement with the Tawi-Tawi Electric Cooperative (TAWELCO) to ease the cooperative’s financial burden and strengthen electricity service for local communities.

“When obligations are put on a workable path and performance is consistently monitored, the gains can translate into better service for households, stronger support for local enterprise, and a more enabling environment for development,” Energy Undersecretary Rowena Cristina L. Guevara, who witnessed the signing, said in a statement over the weekend.

Kaltimex was represented by Chairman Krishan Kumar Ralhan and President Oscar A. Torralba, while TAWELCO was led by Project Supervisor and Acting General Manager Peraida T. Jalan.

The two parties first entered into a power supply agreement in 2018, under which Kaltimex built a new diesel power plant to meet the electricity demand in Bongao municipality.

However, TAWELCO faced operational and financial challenges that contributed to the accumulation of arrears.

With its poor credit standing preventing bail refinancing, the cooperative proposed a debt restructuring plan supported by recent improvements in payment performance and operations.

To expand service without additional borrowing, Kaltimex will provide a 5-kilometer dedicated feeder line to connect new customers near municipal and provincial offices. Revenues from these new connections will support repayment under the restructuring plan.

The Department of Energy (DoE) has also endorsed Kaltimex’s request for a 10% increase in TAWELCO’s allowable capacity band to the Energy Regulatory Commission. 

“This move will strengthen emergency reserve capacity and reduce reliance on short-term generator leasing, which is expected to lower outage risks during peak demand and emergencies,” the DoE said.

TAWELCO will undergo monthly performance reviews to ensure compliance with agreed targets, including keeping system loss below 10%, completing priority infrastructure projects, and implementing staff training and capability-building programs.

The electric cooperative serves the entire province of Tawi-Tawi, providing electricity to more than 11,000 customers, including 10,225 residential and 557 commercial connections. — Sheldeen Joy Talavera