SMC, Korean firm taking over Angat

Manila Standard Today
By Alena Mae S. Flores | Posted on Sep. 04, 2013 at 12:03am 

K-Water Resources Corp. of Korea and joint venture partner San Miguel Corp. are set to take over the operations of the 218-megawatt Angat hydro power plant in Bulacan by the end of the year, after the government issued the certificate of effectivity for the deal.

K-Water vice president Byung Hoon Yune told reporters at the sidelines of the ceremonial turnover of certificate of effectivity Monday night the Korean company would now prepare its commitments, including the $440.88-million bid payment to Power Sector Assets and Liabilities Management Corp. within 270 days.

“Right now, everything should be done in 270 days… I’m sure it [payment] shall be done timely,” Yune said.

PSALM president Emmanuel Ledesma said in a statement the turnover of the certificate of effectively “sets in motion the final closing of the sale.”

Yune said the company, together with San Miguel, plans to take over the operations of the Angat power facilities by the end of the year. The power plants in San Lorenzo, Norzagaray, Bulacan, consist of four main units, each with a 50-MW capacity.

Yune said K-Water and San Miguel signed a joint venture agreement on Aug. 23.

“San Miguel will be the partner for the SPC [special purpose company] for the operation and maintenance of Angat plant,” he said.

San Miguel and other Filipino investors would likely take a 60-percent stake while K-Water would own 40 percent, he said.

Yune said K-Water would handle the operations of the plant while San Miguel would manage the special purpose company of the Angat facility.

“They [San Miguel] will take part on the management. Financially, they will control the SPC and K-Water will technically operate and maintain the Angat plant,” he said.

Yune said the joint venture would inspect the facility and decide on additional investment to rehabilitate or expand the project.

The certificate requires K-Water to fully comply and complete all conditions in the closing of the Angat hydro power plant sale.  It requires K-Water to deliver the P8.82-billion performance bond within 10 days from contract effectivity, or not later than Sept. 12.

K-Water offered the highest bid for the Angat facility in 2010, but the turnover of the assets was delayed due to the case filed by non-government organizations at the Supreme Court, citing constitutionality issues. The high tribunal eventually upheld the sale of the Angat power plant to K-Water.  source