12 Dec 2017
As a serious consequence of unilaterally rescinding the Independent Power Producer Administrator Administration Agreement (IPPA AA) for the energy capacity of Mindanao Geothermal Power Plants (1 and 2), the Power Sector Assets and Liabilities Management (PSALM) Corporation had no other recourse but to invoke “administrator default” on the part of FDC Misamis Power Corporation, the assigned administrator.
PSALM subsequently forfeited the performance bond of FDC Misamis on 11 December 2017, amounting to PhP400 million.
FDC’s decision to rescind came amidst efforts of resolving its outstanding financial obligations to PSALM comprised of generation charges.
FDC is in arrears amounting to PhP404.995 million (inclusive of interest) as of 30 November 2017, the computation of which was stringently and merely based on the provisions of the Agreement.
Corporate Communications Division