Korean firm still keen on Angat hydro plant

Manila Times.net

Written by : Euan Paulo C. Añonuevo Reporter

STATE-RUN Power Sector Assets and Liabilities Management Corp. (PSALM) said a Korean firm is still keen on pursuing its bid for the Angat hydroelectric power plant.

Emmanuel Ledesma, president of PSALM told reporters that Korea Water Resources Corp. (K-Water) remains interested in the acquisition of the hydro plant attached to the Angat dam, Metro Manila’s main potable water source.

“So far, the indications I have are that K-Water remains very interested,” he said.

PSALM is the government’s power sector privatization arm. Last year, PSALM auctioned off the Angat dam’s hydro plants in line with its mandate.

K-Water submitted the highest bid for the facility but was blocked by opposition from various non-government organizations and lawmakers from the takeover the asset before the Supreme Court (SC) because of concerns over the control of Metro Manila’s water supply.

K-Water bested other bids for the plant with a $440.80 million offer.

The PSALM official, however, said that the privatization of the Angat hydropower plant will not give K-Water the sole authority and discretion to manage the use of water from the Angat dam.

This is because the National Water Resources Board will strictly regulate the use of water based on the Water Code or Water Protocol.

Ledesma said the privatization of the Angat plant stringently followed the provisions of the Electric Power Industry Reform Act of 2001, the country’s power sector reform program and was conducted in a transparent and objective manner.

The power component of the Angat hydropower plant, in particular, was privatized and the Angat Dam remains the property of the government.

Despite the opposition to its take over of the Angat plant, K-Water renewed the bid bond for the facility, which is equivalent to 1 percent of the bid offer equivalent to about $4.41 million.

The bid bond is a letter of credit issued by lenders but not directly paid to PSALM.

Earlier, Gee-Hwan Park, K-Water vice president said that they are willing to wait for the SC decision.

“We are willing to wait for the proper judgment of the SC . . . We will wait and will not pull out,” he said.

Park said they may also look at small hydro projects but it has not filed any application with the Energy Department.

“We do not have specific plan yet but if opportunities rise on these areas, we will look into it. We are willing to partner with government or private entities on these renewable energy projects,” he said.

K-Water is engaged in the construction, operation and management of multi-purpose dams and multi-regional/local water supply systems in Korea.

K-Water oversees 15 multi-purpose dams that supply water, control floods and generate electricity.