01 Dec 2005
The Power Sector Assets and Liabilities Management Corporation (PSALM) has forwarded to YNN Pacific Consortium Inc., buyer of the 600-megawatt Masinloc coal-fired power plant, all the closing deliverables as specified under the asset purchase agreement to pave the way for the collection of the 40% down payment and the turnover of the power plant to YNN.
As required under Section 4.02 of the Asset Purchase Agreement, PSALM President Nieves L. Osorio issued a certificate of closing last November 25 to attest that PSALM had obtained the consent of National Power Corporation’s creditors on the sale of Masinloc, secured possessory rights over the leased premises, and taken all necessary corporate actions and obtained all approvals and authorizations needed to effect the sale.
Osorio also certified that there is sufficient supply of coal for the power plant at the closing date, and more incoming shipments would be delivered in the next six months.
Under the asset purchase agreement, PSALM should complete all conditions precedent by December 2. Failure to complete would have allowed YNN to walk away from the deal after 30 days without the risk of forfeiture of its $11-million performance bond. PSALM completed the closing deliveries last November 25.
With the completion of all requirements, PSALM is now awaiting confirmation from YNN. Meanwhile, the agency tasked to privatize all assets of National Power is preparing for the bidding of several hydroelectric facilities and the 600-MW Calaca coal-fired power plant in Batangas. These facilities will be bid out next year.
Strategic Communications and Partnership Division |