Consumer watchdog group, Davao Consumer Movement (DCM), has raised red flags after obtaining screenshots of what appears to be a leaked operating lease agreement between the Northern Davao Electric Cooperative (NORDECO) and a private company, Mikro-Tech Capital Corp., involving power facilities in the Island Garden City of Samal (IGaCoS).
The group said the document shows a lease covering an overhead 69kV sub-transmission line, a 69kV submarine cable, and a 20MVA substation in Samal.
The group added that the agreement also includes the operation and maintenance of electricity distribution facilities in the area.
According to the group, the document, allegedly signed by acting General Manager Elvera Alngog and NORDECO Board Vice Chairperson Dr. Alejandro C. Rodriguez, shows that NORDECO committed to pay the firm about P150 million from 2023 to 2027, and P175 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,” the group said.
The group mentioned that the consumers know NORDECO borrowed P1 billion to fund the submarine cable project, but the cooperative has not given clear or meaningful updates about how the project is progressing.
“Worse, 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 P450 million without delivering tangible progress,” it said.
The group described the alleged agreement as alarming, pointing out that NORDECO has never informed the public about such a project.
“They said a deal of this size, which directly affects residents and businesses in Samal, should have been made public from the start,” it said.
The group emphasized that the controversy also backs the Provincial Government of Davao del Norte’s call for a Senate Blue Ribbon Committee investigation into the Samal submarine cable project, which 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,” it said.
“The alleged agreement raises urgent questions: Was this deal approved by the NORDECO Board of Directors? Was it ratified by member-consumer owners? Can appointed board members, without a direct mandate from consumers, enter into contracts of this magnitude? 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 group added.
The watchdog group also linked the issue to high electricity rates, asking how NORDECO is paying for its loans and whether consumers have been carrying the financial burden.
The Davao Consumer Movement urged NORDECO to release a full and clear financial report on the P1 billion loan and all related expenses, saying that “short statements or simple denials will not ease public concern.”
