by Myrna Velasco October
13, 2016
A ruling of the Supreme
Court (SC) is paving the way for the award of the 153.1-megawatt Naga thermal
power facility to Therma Visayas Power, Inc. (TVPI) of the Aboitiz Group,
effectively nullifying the earlier handover of the asset to SPC Power, Inc.
The high court has
directed asset seller Power Sector Assets and Liabilities Management
Corporation (PSALM) to reinstate the notice of award (NoA) that was set for
TVPI dated April 30, 2014.
This was previously
cancelled because of the right-to-top provision set forth in the bidding terms
that had been exercised by SPC Power relating to its land lease agreement (LLA)
with PSALM and its precursor firm National Power Corporation.
“The notice of award in
favor of the respondent (TVPI) is reinstated, excluding the portion therein
granting to SPC the right to top,” the SC ruling has stipulated.
The high court further
directed respondent PSALM “to execute the NPPC-APA (Naga Power Plant Complex-
Asset Purchase Agreement) and NPPC-LLA in favor of respondent TVPI with
dispatch.”
When asked on PSALM’s
move on the court ruling, company Officer-in-Charge Lourdes S. Alzona noted
that they are reviewing the SC decision and will refer their next step to the
Department of Energy.
The ultimate court
rendered that the Asset Purchase Agreement (APA) previously executed with SPC
Power, following its exercise of its right-to-top option, would need to be set
aside and invalidated.
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