Tuesday, January 2, 2018

Phinma, PSALM end row over Leyte plant



By: Ronnel W. Domingo / 05:16 AM December 30, 2017

Phinma Energy Corp. said yesterday it had agreed with state-firm Power Sector Assets and Liabilities Management Corp. (Psalm) to mutually end their administration agreement related to the Unified Leyte Geothermal Power Plant (ULGPP).
Phinma Energy said in a disclosure to the Philippine Stock Exchange it had settled all of its obligations to Psalm.
Also, the company will withdraw the case it filed earlier and no further claims will be pursued.
Last September, the company said it had filed in court a complaint seeking to restrain Psalm from terminating the agreement related to the strips of energy of the ULGPP on grounds of “administrator’s default.”
In November 2013, Phinma Energy—then named Trans-Asia Oil and Energy Development Corp.)—was declared one of the winning bidders with the right to administer 40 MW “strips of energy” from the ULGPP.
In the same month, Supertyphoon “Yolanda” hit Eastern Visayas which resulted in extensive damage to the ULGPP. Consequently, Psalm awarded the contract to the winning bidders after a year’s delay.
Phinma Energy formally sought the renegotiation of the agreement, but Psalm served the company a notice of default and termination of the agreement.
Also last September, Psalm said deficiencies in obligations on the part of Independent Power Producer Administrators (IPPAs) were addressed according to the terms of the administration agreement.

No comments:

Post a Comment