12 Sep 2005
The World Bank, one of the major creditors of the National Power Corporation (NPC), has “no objection” to the sale of the 600-megawatt (MW) Masinloc power plant located in Zambales, WB country director Joachim von Amsberg said in a letter dated September 8.
The Power Sector Assets and Liabilities Management Corporation (PSALM), the government agency tasked with privatizing NPC’s assets, successfully conducted the bidding of the Masinloc power facility late last year wherein the YNN Pacific Consortium emerged the winner, submitting the highest bid of $561.7 million.
PSALM is now awaiting the approval of the Japan Bank for International Cooperation (JBIC) to finally complete the process of securing the consent of all creditors, which is required for the turnover of Masinloc to the winning bidder.
Last July 19, 2005, the Asian Development Bank also gave its “specific consent” the sale of the Masinloc power facility together with the transfer of other liabilities and eligible generation assets of NPC to PSALM.
“Once we secure JBIC’s consent on Masinloc, we can already request the transfer of the required upfront payment equivalent to 40% of the aggregate purchase price of $557 million, or $222.8 million, to the national government,” said PSALM president Nieves L. Osorio.
“This welcome development will send a positive signal to our investors that the government is serious in implementing its power reform program,” she added.
Osorio lauded the World Bank for expressing its appreciation to the earnest efforts of the Philippine government to pursue the privatization of NPC’s generation and transmission assets, saying it is a clear indication that the creditors support the restructuring of the power industry.
By far, the Masinloc plant is the single biggest sale of PSALM. The other plants that have been successfully privatized are Talomo in Davao City, Agusan in Bukidnon, Barit in Camarines Sur, Cawayan in Sorsogon and Loboc in Bohol, all of which have already been turned over to their new owners.
Strategic Communications and Partnership Division |