THE Power Sector Assets and Liabilities Management Corp. (PSALM) said on Thursday that the 218-megawatt (MW) Angat hydroelectric power plant will finally be turned over to its new owner Korea Water Resources Corp. (K-Water) on October 31.
“The closing ceremony is at the end of this month. Everything was already agreed [upon],” PSALM President Emmanuel Ledesma Jr. said.
K-Water, in April 2010, won the bid to privatize the facility. It placed a bid of $440.8 million. It was supposed to take over the facility late last year.
Upon closing of the sale, the National Power Corp. would no longer operate the facility. PSALM is the agency overseeing the privatization of Napocor’s assets.
The delay was brought about by various regulatory approvals, including the Bangko Sentral ng Pilipinas’s (BSP) green light for K-Water’s loan application. Out of the $440-million payment, $340 million is the subject of the BSP application.
Also, a dispute between PSALM and the former employees of Napocor adversely affected the supposed closing of the sale of the power facility.
Ledesma earlier said that K-Water received a notice of garnishment from the Quezon City Regional Trial Court’s sheriffs pursuant to the Supreme Court (SC) decision on June 30.
The SC lifted the garnishment order on September 10 following the motion for reconsideration sought by PSALM. Ledesma welcomed the lifting of the notice of garnishment because this allows it to continue operating its plants and pay off its debts.
Included in the garnishment order was the fee for the Angat facility. That garnishment order was lifted, though. However, the period within which to draw down the loan has already expired. Thus, K-Water sought for an extension from the BSP.
There was also a case filed by non-governmental organizations questioning the constitutionality of the transaction with the SC. This, likewise, delayed the turnover of the assets to K-Water. The High Court eventually upheld the sale of the Angat power plant to the Korean company.