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STATE-run National Power Corp. (Napocor) may be dragging
its feet and causing a delay in the completion of the
sale of the 600-megawatt (MW) Calaca Power Plant in
Batangas to Suez Energy International.
Last
October, the consortium led by Suez-Tractebel S.A. won
the bidding for Calaca power plant for $786.53 million.
A source
privy to the transaction, who asked not to be named,
said talks were suspended after Napocor expressed
reluctance to repair Unit 1 of the Calaca plant or to at
least bring it closer to operating condition.
The
source said both units of the Calaca units are currently
on maintenance shutdown, and are in need of repairs to
merit a turnover to Suez Energy International.
An
e-mail message sent last Wednesday by BusinessMirror to
the corporate communications department of Napocor to
get its side on the matter remains unanswered as of
press time.
The
source noted that
Suez has already indicated to the Power Sector Assets and
Liabilities Management Corp. (PSALM) its intent to
pursue financial closure as early as June this
year—roughly two months ahead of schedule.
The
source said Napocor had initially agreed to undertake
the repair of Calaca Unit 1, but then said the
completion may take until June or July, a condition that
has reportedly been concurred to by Suez Energy and
PSALM.
The
source said that things have allegedly changed in a
meeting last week that was intended to smoothen out the
timetable for the plant’s repair.
At the
current state of the plant, the source said it cannot be
turned over to the buyer as it is not in operating
condition as stipulated in the Asset Purchase Agreement.
The
source said Napocor allegedly demanded from PSALM to
advance $600,000 to finance the purchase of spare parts
to be installed as replacements in the generating
units—to which the PSALM had agreed.
The log
jam now lies with Napocor, which has yet to commit when
it would bid out the spare parts and other requirements
for the plant’s repair in order to have the closing date
for the Calaca transaction between PSALM and Suez
Energy.
The
source said that PSALM has tentatively set an interim
deadline for closing the deal on the week of July 15 to
allow for the agreed repair to be completed.
Suez
Energy indicated early on that it will work on a full
payment for the Calaca transaction. It has negotiated
for loans with various creditors, including the
International Finance Corp. for $300 million and the
Asian Development Bank for $200 million. |
