Kinks in $4-B sale of Mirant assets now being ironed out
TOKYO (Via PLDT) — Kinks in the $4-billion buyout by the Tokyo Electric Power Co. (TEPCO) and Marubeni Corp. consortium of US-based Mirant Corp.’s power generating assets in the Philippines are expected to be ironed out soon, Philippine Ambassador to Japan Domingo Siazon said yesterday.
Siazon issued the statement hours ahead of President Arroyo’s visit here where she will have talks with Japanese Prime Minister Shinzo Abe and meet with business leaders today and address the 13th Nikkei Conference to be attended by other regional leaders.
The TEPCO-Marubeni consortium won in December the bid to buy Mirant Corp.’s power plants in the Philippines, namely the 735-megawatt coal-fired power plant in Pagbilao, Quezon, and a similar facility in Sual, Pangasinan with a capacity of 1,200 megawatts.
Marubeni Corp. is
He said some technical problems in the plants as well some snags in the credit line being sought by the consortium to finance 75 percent of the deal are being ironed out.
“I think there was a problem with a plant and until that is repaired, they will not get the credit line. But by now, I think they’re prepared to be audited and I think by early June, they should finalize it already,” Siazon told reporters.
He said he expects Marubeni and TEPCO to be able to borrow money from the Japan Bank for International Cooperation for the investment.
In her departure statement yesterday, President Arroyo described the deal as “the largest Japanese investment in Philippine history.”
“Their investment in the
The consortium beat Japanese trading company Mitsui & Co, Mitsubishi Corp., Korea Electric Power Corp. and US power producer AES Corp. in the bidding of the power assets.
The purchase included the power plants’ debt. Marubeni and TEPCO gained 20-year contracts to supply power in the
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