Manila Bulletin
By: Myrna M. Velasco
Published: March 18, 2013
Angat plant winning bidder Korea Water Resources Corporation (K-Water) is reportedly negotiating with the energy group of San Miguel Corporation (SMC) to become its local partner in the hydropower generation venture.
It was gathered from highly placed sources that despite snags being encountered in the turnover of the facility, San Miguel remained an “interested party” in the asset.
The offer of the Metropolitan Waterworks and Sewerage System (MWSS) for a rehabilitation deal on the two auxiliary units of the Angat plant has complicated the process as to the facility’s award to the winning bidder.
The privatized portion of the Angat plant won by K-Water was the 218MW capacity owned by the National Power Corporation (NPC). It exempted the auxiliary units 4 and 5 of aggregate 28MW capacity which are under the charge of MWSS.
Nevertheless, Power Sector Assets and Liabilities Management Corporation (PSALM) president Emmanuel R. Ledesma Jr. has indicated that a “notice of effectivity” will still be issued to K-Water. This will signal the stage in the process when the asset-seller can already call on the payment of the winning bidder.
“PSALM will next issue the certificate of effectivity, as per provisions of the bidding procedures and the sale contract,” Ledesma said.
He qualified though that they will have “to go through normal operating procedures in the meantime,” apparently referring to concerns on the rehab plan for the MSS units.
The Angat facility was acquired by K-Water for $440.88 million in a privatization auction undertaken by PSALM in 2010. However, a legal battle prevented it from immediately awarding the facility to the private sector taker. That was until a final favorable ruling was handed down by the Supreme Court last year. source
It was gathered from highly placed sources that despite snags being encountered in the turnover of the facility, San Miguel remained an “interested party” in the asset.
The offer of the Metropolitan Waterworks and Sewerage System (MWSS) for a rehabilitation deal on the two auxiliary units of the Angat plant has complicated the process as to the facility’s award to the winning bidder.
The privatized portion of the Angat plant won by K-Water was the 218MW capacity owned by the National Power Corporation (NPC). It exempted the auxiliary units 4 and 5 of aggregate 28MW capacity which are under the charge of MWSS.
Nevertheless, Power Sector Assets and Liabilities Management Corporation (PSALM) president Emmanuel R. Ledesma Jr. has indicated that a “notice of effectivity” will still be issued to K-Water. This will signal the stage in the process when the asset-seller can already call on the payment of the winning bidder.
“PSALM will next issue the certificate of effectivity, as per provisions of the bidding procedures and the sale contract,” Ledesma said.
He qualified though that they will have “to go through normal operating procedures in the meantime,” apparently referring to concerns on the rehab plan for the MSS units.
The Angat facility was acquired by K-Water for $440.88 million in a privatization auction undertaken by PSALM in 2010. However, a legal battle prevented it from immediately awarding the facility to the private sector taker. That was until a final favorable ruling was handed down by the Supreme Court last year. source
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