AboitizPower gets TRO vs Ilocos Sur asset sale
Danessa Rivera (The Philippine Star) - December 4, 2019 - 12:00am

MANILA, Philippines — Aboitiz Power Corp. has secured a temporary restraining order (TRO) against an Ilocos Sur municipality from selling its hydropower properties.

In a disclosure to the Philippine Stock Exchange yesterday, AboitizPower said the Ilocos regional trial court (RTC) has granted the petition of its wholly-owned subsidiary Luzon Hydro Corp. (LHC) to stop the municipality of Alilem from auctioning LHC’s real properties located in Alilem, Ilocos Sur for a period of 20 days.

The Ilocos RTC has ordered LHC and the municipality of Alilem to submit their position papers with 10 days.

The TRO petition stemmed from the real property tax (RPT) delinquency slapped by the Office of the Municipal Treasurer of Alilem in LHC from 2002 to August this year amounting to P446.03 million.

The municipal treasurer also issued a notice of publication and auction sale covering the real properties of LHC, consisting of industrial machineries and buildings.

LHC, however, questioned the correctness of the amount assessed as RPT delinquency and asked the court to prevent the auction sale of the assets covered by the warrants of levy issued by the municipal treasurer of Alilem.

The Aboitiz firm was also backed by the Power Sector Assets and Liabilities Management Corp. (PSALM), which issued a letter to the municipality of Alilem urging it to reconsider the auction of the levied assets in consideration of the ownership rights and interest of the government over the levied assets.

Prior the RPT delinquency notice, LHC made an offer to the provincial government of Ilocos Sur to pay RPT computed in accordance with the provisions of Executive Order 60, which allows the reduction and condonation of real property taxes and penalties assessed on power generation facilities of independent power producers under build-operate-transfer contracts.

LHC owns, operates and manages the 70-megawatt (MW) Bakun AC run-of-river hydropower plant located in Amilongan, Alilem, Ilocos Sur.

ABOITIZ POWER CORP. STOCKS
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