28 Oct 2005
The Japan Bank for International Cooperation (JBIC), one of the major creditors of the National Power Corporation, has given its consent to the sale of the 600-megawatt Masinloc coal-fired thermal power plant located in Zambales, to finally complete the process of securing the consent of all National Power creditors which is required for the formal turnover of the plant to the winning bidder, YNN Pacific Consortium. The other National Power creditors - Asian Development Bank and the World Bank - gave their consents in July and September, respectively.
“After careful consideration of the request (of the Department of Energy, National Power and the Power Sector Assets and Liabilities Management Corp.) and in accordance with all existing loan agreements, we advise that Japan Bank for international Cooperation, for itself and on behalf of the lenders other than JBIC, hereby consents to the transfer of the ownership from the borrower (National Power) to the Power Sector Assets and Liabilities Management Corporation,” stated JBIC director Manabu Homma, in a letter dated October 28.
JBIC also gave its assent to the transfer of the power generation facility to YNN who turned in the highest bid of $561.7 million.
JBIC’s consent finally puts to rest published speculations that the bank will not give its nod to the Masinloc sale unless the Philippine government assures the Japanese lending firm that all loans made to the facility will be paid first.
With the JBIC consent, PSALM, the government agency tasked to privatize National Power’s assets, can now close the transaction.
“The completion of the creditors’ consent to the sale of the Masinloc facility is a boost to the privatization efforts of the government as it will encourage investors to enter the Philippine power industry and help expand the ownership base of generation companies in the country,” said PSALM President Nieves L. Osorio. “This positive development will hopefully lead to more success in terms of bidding out the other National Power facilities.”
Auctioned off late last year, the Masinloc power plant is considered so far, the first major facility to be privatized by 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 |