Business Mirror
Published on Thursday, 22 August 2013 18:56 Written by Lenie Lectura
MERALCO PowerGen Corp, the power-generation arm of utility firm Manila Electric Co. (Meralco), is still uncertain if it still wants to partner with K-Water Resources Corp. of South Korea for the possibility of jointly operating the 218-megawatt (MW) Angat hydropower plant.
When asked if Meralco is no longer pursuing its bid following a confirmation from San Miguel Corp. (SMC) that a joint venture with K-Water is being pursued, Meralco PowerGen Managing Director Aaron Domingo said, “someone else controls the [partnership] opportunity.”
But if given the opportunity, Domingo said Meralco will “entertain a discussion [with K-Water], adding that ‘we cannot say we are interested until we know what the transaction is.’”
SMC recently said the board has authorized the management to “discuss, negotiate and to enter into a joint venture with K-Water under terms and conditions favorable to the company, to create an entity to undertake the administration, rehabilitation, operation and management of the Angat hydropower plant.”
SMC President Ramon Ang added, “We’re still in talks. No details yet.”
K-Water, in April 2010, won the bid to privatize the facility which is powered by water from the Angat dam in Bulacan. It placed a bid of $440.8 million, besting other offers from SMC, First Gen Northern Energy Corp., SN Aboitiz Power and Trans-Asia Oil and Energy Development Corp. However, the facility has yet to be turned over to K-Water after the latter cited deterioration of the facility, which prompted the South Korean firm to demand from the Philippine government to bring down the $440-million price tag. source
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