K-Water to block Angat PPP rebid

Manila Bulletin 
By Myrna M. Velasco 
Published: July 8, 2013 
Korea Water Resources Corporation (K-Water) has indicated it is going block the rebidding process if the Public-Private Partnership (PPP) Center will schedule a rebidding of the rehabilitate-operate-maintain (ROM) contract for the 28-megawatt auxiliary units of the Angat hydroelectric power plant (AHEPP).
The Korean firm said there is no formal issuance of the certificate of effectivity (CoE) yet for the 218-MW component of the privatized Angat plant and it has not even told the Philippine government if it will back out or will close the transaction, so it remains the declared winning bidder; thereby giving it the legal personality to fiercely contest the rebid plan for Angat’s auxiliary units 4 and 5.
The two auxiliary units are owned by the Metropolitan Waterworks and Sewerage System (MWSS) and are being offered to interested private sector investors for a power generation venture under a PPP arrangement.
“They (PPP and MWSS) cannot rebid Angat. MWSS cannot engage in power generation. The 58 cms (cubic meters per second) for power generation was given to us,” had been the strong words blurted out by K-Water head of Project Finance Team Taek-Won Seo in an exclusive interview.
When asked if the Korean firm will block any attempt of the government to rebid the Angat PPP deal, he responded with a snappy “yes.”
Seo reiterated that the role of MWSS for the 15 cms is only confined to “water supply”; and that it cannot apply for separate water rights with the National Water Resources Board (NWRB) for power generation purposes.
The only middle ground they can agree on with government, he said, will be MWSS’s acceptance of their proposed revenue sharing arrangement for water utilization at the auxiliary units.
Both the MWSS and PPP Center earlier resolved to rebid the ROM deal for auxiliary units 4 and 5 after only one party qualified in the first round of auction. It was gathered from industry sources that despite the “accept Angat without conditions” stance of the Philippine government, K-Water is not out of the game yet – and is in fact looking for a ‘white knight’ which can help it get the closing of the 218-MW Angat facility race through a positive finish.
Seo admitted that his company is in talks with San Miguel Corporation, Manila Electric Company (Meralco) and Marubeni Corporation for a possible partnership in the project. Of the three, it was tipped off by sources privy to the matter that a partnership deal with San Miguel “might be sealed soon.”  source