July 19, 2018 | 12:03 am
SPC POWER Corp. has downplayed the
impact on the company of the recent turnover of a power plant complex in Naga
City, Cebu to another group after their legal battle resulted against its
favor.
“Before the turnover, only the Cebu
Diesel Power Plant with total dependable capacity of 33 MW [megawatts] had been
operating. The other plants (the Cebu Thermal Power Plants 1 & 2) had been
scheduled for dismantling to pave the way for the planned construction of a new
power plant,” the company told the stock exchange.
He said the immediate effect of the
turnover of the Naga facility on SPC’s business is the loss of revenue
generated from the Cebu diesel plant.
“However, the said loss is expected
to be substantially recovered with the completion of rehabilitation and full
commercial operation of Power Barge 104 (PB 104) within the second half of the
current year,” it said.
PB 104 was acquired from Power
Sector Assets and Liabilities Management Corp. (PSALM) in 2016, it said. It has
a total dependable capacity of 26 MW and has completed total barge
rehabilitation.
“With major overhauling already
completed on three engines (one engine still ongoing), PB 104 has been declared
for commercial operation effective July 18, 2018,” SPC said.
It said that with the development of
a new power plant at the Naga power complex already halted due to the adverse
Supreme Court decision, the board of directors of SPC had set its sights on
other power project opportunities.
“New hydro power plant projects are
being considered in other parts of Visayas and Luzon,” it said, without
disclosing details.
On Monday, SPC said it had turned
over the 153.1-MW land-based power plant in Naga City to PSALM, paving the way
for Aboitiz Power Corp. to take hold of the complex after years of legal
proceedings that ended in its favor.
It said the turnover is pursuant to
the decision of the Supreme Court in Osmeña versus PSALM et al., declaring as
null and void the asset purchase agreement and land lease agreement covering
the complex, entered into by SPC and PSALM, the government agency that handles
the privatization of the government’s power-related assets.
On Wednesday, shares in SPC slipped
0.19% to close at P5.28 each. — Victor V. Saulon
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