29 Nov 2007
SN Aboitiz Power Hydro Inc. (SNAP Hydro), fresh from the completion of the privatization of the 360-megawatt (MW) hydroelectric power plant which it won on 14 December 2006, again emerged as the highest bidder for the 75-MW Ambuklao and 100-MW Binga hydroelectric power facilities that the Power Sector Assets and Liabilities Management Corporation (PSALM) bid out yesterday.
SN Aboitiz offered USD325 million for the Benguet-based power facilities, while Calaca Power Partners Co. Ltd. bid USD305 million. Both bids were above the reserve price set by the government. PSALM did not disclose the reserve price.
First Gen Hydro Power Corporation decided to defer its participation in the final bid. First Gen recently bagged the government's 60% stake in the Philippine National Oil Company-Energy Development Corp. with a bid of PHP58.5 billion.
SNAP Hydro is a Philippine corporation whose 60% outstanding capital stock is owned by Manila-Oslo Renewable Enterprise Inc. The rest, or 40%, is owned by SN Power Holding Singapore Pte. Ltd. The corporation was incorporated on 12 March 2007.
SNAP Hydro will be declared the winning bidder as soon as PSALM has verified the accuracy, authenticity and completeness of all the bid documents that the consortium had submitted. PSALM will then issue the Notice of Award to the consortium to signify that it is the winning bidder for the Ambuklao-Binga plants.
To allay fears and speculations of foul play in the government's privatization program, PSALM opened the bidding exercise for the Ambuklao-Binga power facilities to media coverage. PSALM also invited observers from the House of Representatives, private entities, and non-government organizations to give these stakeholders the opportunity to witness and appreciate the whole bidding exercise.
On the allegation that the prequalification process in the bidding for the 25-year concession of the National Transmission Corporation (TransCo) was biased, President Ibazeta welcomed any move by Congress to scrutinize steps taken in line with the TransCo privatization.
"We wish to assure our legislators, investors, and the general public that the privatization process is aboveboard. We are ready to give our full cooperation in the inquiry. We only hope that this would not result in the further delay of the privatization program," he said.
PSALM is scheduled to bid out the TransCo concession on 12 December.
PSALM expects to reach a 50% privatization level by the end of the year to facilitate open access and retail competition. It has successfully bid out about 43% of the total operating capacities in Luzon and the Visayas as of October 2007. This includes the Ambuklao-Binga power plants.
Strategic Communications and Partnership Division |