Business World Online
Posted on August 06, 2014 10:56:00 PM
THE TURNOVER of the 153.1-megawatt (MW) Naga power plant complex to the winning bidder is eyed within this month, an official from the Power Sector Assets and Liabilities Management Corp. (PSALM) yesterday said.
PSALM wants to turn over the 153.1-megawatt Naga power plant complex to SPC Power Corp. within the month.
“We target the turnover to be done within this month,” said PSALM President Emmanuel R. Ledesma, Jr. in a text message.
He said a notice of award was issued to SPC Power Corp. after the company’s board decided to grant the company a new 25-year land lease agreement (LLA).
SPC has the “right-to-top” the bidding for the power asset as provided by a 2009 LLA, which would lapse on 2020. Under the earlier LLA with PSALM, SPC had the same right to top the winning bidder’s price should the property be eventually sold or leased out.
The Naga power plant complex was supposed to be awarded to Therma Power Visayas, Inc. -- a subsidiary of Aboitiz Power Corp. (AboitizPower). However, SPC submitted its counter-offer and wired a payment of P1.143 billion -- 5% higher than the P1.088-billion bid of Therma Power -- to PSALM’s account.
Together with the decision to exercise its “right-to-top,” SPC asked PSALM to sign and execute the asset purchase agreement and the 25-year LLA attached to the bidding package.
The auction for the sale of the Naga power plant complex was held last March 31, where the AboitizPower unit bested SPC, its only competitor, which tendered an P859-million offer. The first two auctions for the privatization of the Naga complex held in July and September last year failed after only one firm participated.
The power plant complex consists of three power plants: these are the coal-fired Cebu thermal power plants 1 and 2, with installed capacities of 52.5 MW and 56.8 MW, respectively; and 43.8-MW Cebu diesel power plant, consisting of six 7.3-MW diesel-fed power units. -- Claire-Ann Marie C. Feliciano source
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