09 Jan 2006
The Power Sector Assets and Liabilities Management Corporation, the agency tasked to privatize the assets of the National Power Corporation, formally transmitted the Naga Land Lease Agreement to winning bidder Salcon Power Corporation in a simple affair held on December 19.
The agreement was signed by Salcon President Dennis Villareal. The execution of a new land lease agreement is a requirement before a new power facility can be built inside the Naga Power Plant Complex (NPPCx) to meet Cebu's increasing demand for electricity beginning in 2007.
The NPPCx is being leased, operated and managed by Salcon under a Rehabilitation, Operation, Maintenance and Management (ROMM) Agreement it entered with National Power on March 25, 1994.
The new plant will be a joint venture of Salcon and KEPCO Philippines Corporation (KEPHILCO), a wholly-owned subsidiary of the Korea Electric Power Corporation that controls the generation, transmission and distribution of electricity in Korea. KEPHILCO has a rehabilitate-operate-maintain contract for the 650-megawatt Malaya Thermal Power Plant in Pillilia, Rizal, and a build-operate-transfer contract for the 1200-MW Ilijan natural gas power project in Ilijan, Batangas.
Strategic Communications and Partnership Division |