By
Lenie Lectura - August 23, 2019
THE sale of the
650-megawatt (MW) Malaya Thermal Power Plant (Malaya TPP) and its underlying
land would have to be cleared by the Philippine Competition Commission (PCC),
the Power Sector Assets and Liabilities Management Corp. (PSALM) said.
“The subject
privatization activity will fall under acquisitions as defined under Republic
Act 10667 otherwise known as the Philippine Competition Act, its implementing
rules and regulations, as well as relevant PCC issuances,” PSALM’s Supplemental
Bid Bulletin No. 10 stated.
PSALM and the winning
bidder must “observe and abide by the PCC’s guidelines, particularly on the
Compulsory Notification or Non-Coverage Requirement, whichever is applicable.”
The same bid bulletin
extends the deadline of bid submission to September 18 from September 12.
PSALM said the
extension is necessary in order to accommodate the mandatory review of the
Office of the Government Corporate Counsel (OGCC) on all of PSALM’s
privatization documents, including the asset purchase agreement (APA).
“We need to secure
clearance from OGCC for all agreements to be entered into by PSALM. In the case
of Malaya, we will need to enter into an asset purchase agreement with the
bidder. Thus, PSALM is now coordinating with OGCC to secure clearance on the
provisions of the said APA. Once that is done, we can proceed with the
bidding,” explained PSALM President Irene Joy Garcia.
PSALM has rescheduled
the auction for the power asset many times citing the need to come up with a
basis for a base price, which would have to be determined by third-party
consultant PwC (PricewaterhouseCoopers).
A number of power firms
have expressed interest to buy the power plant. PSALM had previously said there
were four qualified bidders, namely AC Energy Inc., DM Wenceslao and Associates
Inc., DMCI Power Corp., and FGen Reliable Energy Holdings Inc.
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