Manila Bulletin
By Myrna M. Velasco
Published: June 28, 2013
In a 30-minute meeting in South Korea with the officials of Korea Water Resources Corporation (K-Water), Energy Secretary Carlos Jericho Petilla reportedly laid down only two options for the Angat plant winning bidder – for it to accept the asset without conditions or it can walk-away.
“There are no negotiations that happened. He (Petilla) just delivered the message of the Philippine government about Angat,” a source privy to the meeting has divulged.
Petilla, the source added, “repeated the message three times,” and provided the explanation why the Philippine government had to lean with that kind of decision.
It was gathered that most K-Water officials deemed the energy chief’s visit as a sort of “nuclear bomb explosion” because the conditions laid down came as a nasty surprise for them.
K-Water chief executive officer Keun-ho Kim, in a short reply to the Philippine energy chief, reportedly noted that “we are still very much interested in Angat but we have some concerns.”
The Korean firm earlier lodged several conditions for the turnover of the 218-megawatt Angat facility, including revenue-sharing on water use for the plant’s auxiliary units 4 and 5 as well as possible reduction in their purchase price.
After the meeting, the source added that “the officials of the state-run Korean water firm were in deep discussions as to what will be their option or next step on Angat.”
The Philippine energy secretary, it was emphasized, also mentioned the government’s Plan B – and that was deemed as tapping the second highest bidder First Gen on its interest to corner the Angat plant. The Lopez group’s offer for the asset was at $365 million, or $75 million lower than K-Water’s winning bid of $440.88 million.
Petilla reportedly explained that while the bidding conditions may have some “ambiguities” because the process may have been rushed then because of the 2010 elections, it was still the decision of the Philippine government not to change any of the conditions leading to the closing of the deal.
The energy chief, thus, noted that if K-Water will decide to back out from acquiring the Angat hydropower facility, “it will be okay with the Philippine government.”
He also told K-Water that he “will work out a win-win situation” for them, and it was conjectured that the Korean firm would be able to get its security deposit of US$4.4 million.
With the result of the Korea talks circulating in the energy sector as early as Tuesday, industry players have raised that the best option for government will be to re-bid the asset. source
“There are no negotiations that happened. He (Petilla) just delivered the message of the Philippine government about Angat,” a source privy to the meeting has divulged.
Petilla, the source added, “repeated the message three times,” and provided the explanation why the Philippine government had to lean with that kind of decision.
It was gathered that most K-Water officials deemed the energy chief’s visit as a sort of “nuclear bomb explosion” because the conditions laid down came as a nasty surprise for them.
K-Water chief executive officer Keun-ho Kim, in a short reply to the Philippine energy chief, reportedly noted that “we are still very much interested in Angat but we have some concerns.”
The Korean firm earlier lodged several conditions for the turnover of the 218-megawatt Angat facility, including revenue-sharing on water use for the plant’s auxiliary units 4 and 5 as well as possible reduction in their purchase price.
After the meeting, the source added that “the officials of the state-run Korean water firm were in deep discussions as to what will be their option or next step on Angat.”
The Philippine energy secretary, it was emphasized, also mentioned the government’s Plan B – and that was deemed as tapping the second highest bidder First Gen on its interest to corner the Angat plant. The Lopez group’s offer for the asset was at $365 million, or $75 million lower than K-Water’s winning bid of $440.88 million.
Petilla reportedly explained that while the bidding conditions may have some “ambiguities” because the process may have been rushed then because of the 2010 elections, it was still the decision of the Philippine government not to change any of the conditions leading to the closing of the deal.
The energy chief, thus, noted that if K-Water will decide to back out from acquiring the Angat hydropower facility, “it will be okay with the Philippine government.”
He also told K-Water that he “will work out a win-win situation” for them, and it was conjectured that the Korean firm would be able to get its security deposit of US$4.4 million.
With the result of the Korea talks circulating in the energy sector as early as Tuesday, industry players have raised that the best option for government will be to re-bid the asset. source
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