CEBU, Philippines - Aboitiz Power Corp. yesterday said the Supreme Court has reinstated the award of the Naga Power Plant Complex (NPPC) to its subsidiary Therma Power Visayas Inc. (TPVI).
In a disclosure to the Philippine Stock Exchange on Thursday, Aboitiz Power said the SC ruled that the bidding for the 153.1-megawatt power plant by the Power Sector Asset and Liabilities Management Corp. (PSALM) was valid.
But the high tribunal ruling invalidated the condition in the bidding granting SPC Power Corp. the right to top the bid.
"The Supreme Court ordered the reinstatement of the Notice of Award issued by PSALM dated April 30, 2014 awarding the 153.1-MW Naga Power Plant in Cebu to TPVI," the power company said.
The court also annulled and set aside the asset purchase agreement and the land lease agreement between PSALM and SPC for the said power plant.
The SC ruling dated October 5, 2016 also directed PSALM to execute the two agreements in favor of TPVI.
The Supreme Court upheld the validity of the public bidding held by the Power Sector Assets and Liabilities Management (PSALM) Corp. of the 153.1-MW Naga Power Plant but invalidated the condition in the bidding granting SPC the right to top the bid. The SC ordered the reinstatement of the Notice of Award issued by PSALM dated April 30, 2014 awarding the Naga Power Plant in Cebu to Therma Power Visayas Inc, a unit of Aboitiz Power.
“We are pleased with this development as this supports what AboitizPower has been insisting – that the asset went through a fair bidding process. We believe that our subsidiary Therma Power Visayas Inc. won the bid in a fair and transparent manner. Had TPVI not participated, the government would have sold its asset at a much lower price," said Sebastian R. Lacson, the companys coal group president, in a statement yesterday.
Shares of Aboitiz Power were down 0.66% at noon trading yesterday to P45.35 apiece.
PSALM held the first bidding for the plant in 2013.
The bid's first two rounds failed as there was only one bidder, the Salcon Power Corp. (SPC).
Therma Power then joined the third round and won with a bid of P1.089 billion, higher than the P859-million bid of SPC.
SPC, however, exercised the right-to-top, and was hastly issued a Notice of Award by PSALM despite the unanswered issues and the Supreme Court case questioning the vailidity of the right-to-top provision.
SPC won the Naga plant in 2014.
But it was in December 2015 when the SC first came out a decision announcing SPC's purchase of the NPPC as null and void.
PSALM is a government-owned entity, taking ownership of all existing generation assets of the National Power Corp. (FREEMAN)