06 Aug 2014
The Power Sector Assets and Liabilities Management (PSALM) Corporation has awarded the sale of the 153.1-megawatt (MW) Naga Power Plant to SPC Power Corporation.
PSALM issued the Notice of Award (NoA) and the Certificate of Effectivity (CoE) to SPC on 30 July 2014 together with one (1) original executed copy of the Final Transaction Documents, which consisted of the Asset Purchase Agreement (APA) and the Land Lease Agreement (LLA) for the sale of the Cebu-based power plant. The award, PSALM said, was in accordance with the decision of the PSALM Board of Directors in its meeting on 25 July 2014.
"The CoE prompts SPC to fully comply with and complete all the conditions for the closing of the sale of the Naga power plant," PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. explained. "Pursuant to Section 13.14 of the APA, the APA took effect on 30 July 2014 after the CoE was formally received and accepted by SPC. One of the conditions is the delivery of the required performance security for the LLA," Mr. Ledesma added.
SPC already wire-transferred to PSALM's account a total of PhP1.14 billion (PhP1,143,240,000.00) on 20 May 2014. This amount is five (5) percent higher than PhP1.09-billion (PhP1,088,800,000.00) offer of Therma Power Visayas, Inc., which PSALM declared as the highest bidder during the 31 March 2014 public bidding. Mr. Ledesma stated that the condition of the sale provides that SPC has the "right to top" the price of the winning bidder for the Naga plant by five (5) percent, as provided under the LLA executed between PSALM and SPC in 2009 for the Naga Land-Based Gas Turbine.
Located in Colon, Naga City, Cebu, the Naga Power Plant consists of two (2) thermal power plants and one (1) diesel-fired power plant that use a combination of coal, bunker C oil, and diesel as fuel. These are the 52.5-MW Cebu 1 and 56.8-MW Cebu 2 coal-fired thermal power plants, and the 43.8-MW Cebu Diesel Power Plant 1 composed of six (6) 7.3-MW bunker-C fed power units.
Strategic Communications and Partnership Division |