TPVI cleared to buy Naga plant

ABOITIZ Power Corp. said in Thursday that its subsidiary had received regulatory certification to initiate the purchase of a power plant in Naga City, Cebu.

In a disclosure to the stock exchange, AboitizPower said the certificate of effectivity issued by Power Sector Assets and Liabilities Management Corp. ( PSALM) to Therma Power Visayas, Inc. ( TPVI) “implements the Sept. 28, 2015 decision of the Supreme Court, which upheld the April 30, 2014 award of the facility to TPVI.”

“We appreciate the decision of PSALM and we look forward to operating the facility and contribute to securing the energy needs of the Visayas,” AboitizPower President and Chief Operating Officer Antonio R. Moraza said in a statement.

AboitizPower said PSALM issued a notice of award to TPVI in 2014 after the subsidiary posted the highest bid of P1.088 billion for Naga Power Plant Complex after two failed bidding.

The Supreme Court in a Sept. 28, 2015 decision upheld the validity of PSALM’s public bidding, and reiterated the decision in an Oct. 5, 2016 resolution.

The Naga Power Plant Complex is composed of diesel and coal power plants with a combined capacity of 153.1 megawatts.

To recall in 2009, SPC Power Corp. acquired, through a negotiated bid, the landbased gas turbine power plant in Colon, Naga City.

In the same year, it entered into a land lease agreement with PSALM, which included SPC’s right to top the price of a winning bidder for the sale of any property within the leased premises.

Issues came up after PSALM bid out the Naga plant in the leased premises. After two failed bids, PSALM issued a notice of award to TPVI for submitting the highest bid as against SPC’s P859 million.