25 Aug 2006
The Power Sector Assets and Liabilities Management Corporation (PSALM) will release to bidders on Monday (28 August) the final transaction documents (FTDs) for the sale of the 100-megawatt (MW) Pantabangan and the 12-MW Masiway Hydroelectric Power Plant Complex.
“The transaction documents consist of the final versions of the Asset Purchase Agreement (APA), Land Lease Agreement (LLA) and the Operation and Maintenance (O&M) Agreement with the National Irrigation Administration (NIA) that will be binding among the winning bidder, PSALM and the NIA,” said Vice President for Asset Management and Electricity Trading Froilan A. Tampinco.
The winning bidder will sign the APA and LLA with PSALM, and the O&M with the NIA.
The final transaction documents, which were recently approved by PSALM’s Privatization Bids and Award Committee and the Board of Directors, considered the comments submitted by the bidders during the pre-bid conferences and while they were doing their own due diligence.
The APA for the Pantabangan-Masiway facility requires the winning bidder to deliver at least 40% of the purchase price as upfront payment payable on or before the closing date. The balance of 60% may be paid in 14 equal semi-annual payments with an interest of 12% per annum compounded semi-annually.
The winning bidder is also required to post a performance bond equivalent to 2% of the purchase price. The performance bond will be reduced every year equivalent to 2% of the aggregate amount of the deferred payments.
In addition, the winning bidder will be required to post a deferred payment security deposit equivalent to at least the next deferred payment in the form of either cash, currently dated manager’s check or an irrevocable standby letter of credit acceptable to PSALM.
Strategic Communications and Partnership Division |