By | Jan. 27, 2014 at 12:01am
Power Sector Assets and Liabilities Management Corp. said over the weekend the turnover of the 218-megawatt Angat hydro power plant in Bulacan province to K-Water Resources Corp. of Korea will be delayed by another two months.
PSALM, the agency in charge of selling the government’s power assets, was hoping to close the sale of the Angat hydro power plant in January, but said the deal was now moved to March because of unresolved issues.
“We’re targeting to close at the latest March 25 or earlier. There are two more [unresolved] issues,” PSALM president Emmanuel Ledesma Jr. said.
Ledesma said the two unresolved issues involved the issuance of business permits by the local government units and registration of the financial transaction with the Bangko Sentral.
“Once we get those issues done, it should be okay. I don’t see any problem with the BSP registration. [For] business permit, we are already in talks with the local officials,” Ledesma said.
K-water offered the highest bid for the Angat facility in 2010 but the turnover of the assets was delayed several times due to the case filed by the non-government organizations questioning the constitutionality of the transaction before the Supreme Court.
The high tribunal eventually upheld the sale of the Angat power plant to K-water.
The Angat power plants, located in San Lorenzo, Norzagaray, Bulacan, consist of four main units, each with a 50-MW capacity. The units were commissioned between 1967 and 1968.
PSALM in September issued the certificate of effectivity to K-water, the winning bidder for the Angat power facility. With the issuance of the certificate, PSALM and K-water had to comply with certain deliverables, including the $440.88-million bid payment for submission to PSALM within 270 days from early September.
The certificate obliges K-water to fully comply and complete all conditions precedent to the closing of the Angat hydro power plant sale.
K-water, which teamed up with San Miguel Corp., was supposed to take over the operations of the Angat hydro power plant at the end of 2013.
K-water vice president Byung Hoon Yune told reporters in September that “everything should be done in 270 days” including the bid payment. source
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