SPC Power to file MR on SC ruling

by Myrna Velasco November 10, 2015

http://www.mb.com.ph/spc-power-to-file-mr-on-sc-ruling/

SPC Power, which was held as the new owner of the 153-megawatt Naga thermal power facility, will seek reconsideration of the Supreme Court (SC)ruling on the “right to top” provision in the facility’s divestment which also voided the asset’s sale process.

This was indicated by the company in its disclosure to the Philippine Stock Exchange (PSE), emphasizing that it “intends to file a motion for reconsideration (MR)” on the high court’s verdict.

In a separate press statement, the Aboitiz group hailed the ultimate tribunal’s verdict as a manifestation of “transparent and fair bidding process that encourages competition.”

On record, a corporate entity of the Aboitiz group – the Therma Power Visayas, Inc. (TPVI)  – was the original highest bidder in the Naga plant’s privatization for a tender of P1.089 billion.

Nevertheless, the “right to top” in the bidding terms permitted SPC Power to surpass that offer with a 5.0-percent premium relative to the land-lease agreement (LLA) that is linked to the Asset Purchase Agreement (APA) in the privatization deal.

This prompted SPC Power to make the final offer of P1.14 billion that merited the turnover of the asset to it by seller Power Sector Assets and Liabilities Management Corporation.

Aboitiz Power stressed “we believe TPVI won the bid,” with Business Unit head Benjamin A. Cariaso Jr.  noting that “had TPVI not participated, the government would have sold its asset at a much lower price.”

The company further claimed that the award of the facility had been done “hastily” despite “the unanswered issues and the Supreme Court case questioning the validity of the right-to-top provision.”

PSALM, it was gathered, is currently studying its next step on the SC ruling as well as on any option it could take in case this setback on the facility’s divestment would not be resolved.

The ownership changeover for the Naga plant was effective September last year. It was among the last assets privatized under the management of former PSALM president Emmanuel R. Ledesma Jr.