AboitizPower takes over Naga power plant complex

CEBU, Philippines — The Cebu-based unit of AboitizPower Corp (APC) has taken over the 153.1-megawatt Naga Power Plant Complex in southern Cebu.

In a disclosure to the Philippine Stock Exchange yesterday, the company said the Naga plant was physically turned over and accepted by its subsidiary Therma Power Visayas Inc (TPVI).

"Our team has taken possession of the power plant complex and are now assessing the facility in preparation for maintenance and rehabilitation works. We are also conducting an inventory of the assets on site,” TPVI COO Celso Caballero said in a statement.

In May, TPVI received the Certificate of Effectivity (COE) from the Power Sector Assets and Liabilities Management Corp (PSALM) initiating the purchase of the facility.

“We would like to thank PSALM for their assistance in guiding us through this turnover process and we look forward to our partnership with the local government of Naga," he said.

The COE implements the Sept. 28, 2015 decision of the Supreme Court, which upheld the April 30, 2014 award of the facility to TPVI.

The Naga power plant is composed of diesel and coal power plants with a combined capacity of 153.1 MW.

In a separate stock exchange disclosure, SPC Power Corp, the plant's former operator, said it executed a joint turn-over certificate for the plant with PSALM last July 13.

"Thus, SPC turned-over the Naga Power Plant to PSALM while PSALM returned the bid of SPC," the power company said.

Last March 31, 2014, PSALM, operator of state-owned power generation and other disposable assets, conducted a third bidding for the Naga plant after two failed bids.

TPVI was awarded the contract after declaring the highest bid of P1.088 billion.

However, SPC exercised its right to top the winning bid under its 2009 land lease agreement for the land-based gas turbine power plant in Naga and submitted a P1.14-billion bid.

PSALM turned over the Naga plant to SPC in September 2014.

In its September 28, 2015 ruling, the Supreme Court upheld the validity of the public bidding and nullified the asset purchase deal between PSALM and SPC.

In April 2016, the SC decision became final after it denied SPC’s appeal for the second time. (FREEMAN)