Angat Plant Turnover Facing Hurdles

Given the proposed rehabilitation deal being dangled for auxiliary units 4 and 5 under a public-private

partnership (PPP) arrangement, the targeted February turnover of the privatized Angat hydropower plant is

confronting new round of stumbling blocks.

Winning bidder Korea Water Resources Corporation (K-Water) reportedly raised questions on the non-inclusion of

the auxiliary units 4 and 5 in the privatization package when the asset was auctioned by the Power Sector

Assets and Liabilities Management Corporation (PSALM) in 2010.

PSALM president Emmanuel R. Ledesma Jr. admitted that there are major concerns being sorted out with the PPP

Center and the Metropolitan Waterworks and Sewerage System (MWSS) relating to the turnover of the Angat

facility to the winning bidder.

He opined that auxiliary units 4 and 5 would have a significant impact on the revenue stream being expected by

K-Water once it assumes ownership of the asset.

“Yes, there might a significant impact, that’s why we are working closely with MWSS and the PPP Center in

trying to come out with a fair arrangement for all,” Ledesma stressed.

To note, the PPP Center is offering the two auxiliary units of 28 megawatts capacity to interested private

companies which shall enter into a rehabilitate-operate-maintain (ROM) arrangement with MWSS for the uprating

of the facilities.

These are separate from the 218MW capacity owned by the National Power Corporation which was the subject of the

PSALM privatization three years ago.

PSALM has targeted to finally award the privatized Angat plant to K-Water this February after securing a

favorable ruling from the Supreme Court on a case previously lodged by parties opposing the facility’s

divestment.

The concerns raised on the ROM deal for the auxiliary units, however, are viewed by some parties as something

that may open discussions on possibly renegotiating the $440.8 million purchase price tendered by K-Water.

But Ledesma pointed out that at this point “PSALM has not received any request of that nature” from K-Water.

Aside from the PPP and MWSS issues, PSALM and K-Water are also hammering out amendments to the Asset Sale and

Purchase Agreement as well as in the Operation & Maintenance Agreement with NPC to comply with the ruling of

the high court.

https://www.mb.com.ph/articles/391428/angat-plant-turnover-facing-hurdles#.UQVqdfL_csY