09 Nov 2015
The Power Sector Assets and Liabilities Management (PSALM) Corporation has yet to receive a copy of the Supreme Court's (SC) decision on the "right to top" issue regarding the Naga Power Plant Complex (NPPC).
For the record, the Department of Justice (DoJ) affirmed the legality of the "right to top" the adjoining properties within the NPPC accorded to the owner of the Naga Land-based Gas Turbine (LBGT) Power Plant in connection with the privatization of NPPC. The DoJ's confirmation was made prior to the commencement of the NPPC sale process.
SPC Power Corporation, owner of the Naga LBGT Power Plant, was granted the right to top the highest bid on the sale or lease of the properties within the vicinity of the Naga LBGT power facility to give the winning bidder the opportunity to expand, subject to the payment of a premium of 5% over the highest bid on these adjacent properties. The NPPC is located in the vicinity of the Naga LBGT power plant.
The "right to top" was provided in the Land Lease Agreement (LLA) executed among PSALM, National Power Corporation, and SPC in 2009. The LLA was executed pursuant to the Asset Purchase Agreement for the Naga LBGT power plant.
See previously issued related article at PSALM Newsroom: https://www.psalm.gov.ph/News.asp?id=20130019
Corporate Communications Division