Philippines: SC decision gives TPVI right to operate Naga Power Plant

Philippines: SC decision gives TPVI right to operate Naga Power Plant

A court order on Thursday reinstated the notice of award issued by the Power
Sector Assets and Liabilities Management Corp. (PSALM) to Therma Power
Visayas Inc. (TPVI), a wholly owned subsidiary of Aboitiz Power Corp., which
can now own and operate a power plant in Cebu.

'AboitizPower was advised by its wholly owned subsidiary, TPVI, that it
received on Wednesday the Notice of Judgement dated October 5, 2016, in the
Supreme Court (SC) case number GR No. 212686 entitled Sergio R. Osmeña III
vs Power Sector Assets and Liabilities Management Corp.,
Emmanuel R. Ledesma Jr., SPC Power Corporation (SPC) and Therma Power
Visayas Inc., said the power firm in a disclosure to the stock exchange.

In its Notice of Judgement, the SC upheld the validity of the public bidding
held by PSALM of the Naga Power Plant, but invalidated the condition in the
bidding granting SPC the right to top the bid. In particular, the High
Tribunal ordered the reinstatement of the Notice of Award issued by PSALM
dated April 30, 2014, awarding the 153.1-megawatt (MW) Naga Power Plant
Complex (NPPC) in Cebu to TPVI.

The SC also annulled and set aside the Asset Purchase Agreement (APA) and
the Land Lease Agreement executed (LLA) between SPC and PSALM and directed
PSALM to execute the NPPC-APA and the NPPC-LLA in favor of TPVI.

It can be recalled that PSALM declared TPVI as the highest bidder for the
NPPC, with a bid of P1.088 billion, higher than SPC's bid of
P858,999,888.88.

But SPC exercised its 'right to top' the bid, offering PSALM five percent
more at P1.143 billion and 33 percent more than SPC's original bid during
the previous failed auction.

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Ref:
http://www.energycentral.com/news/sc-decision-gives-tpvi-right-operate-naga-
power-plant?did=39204499&utm_source=2016_10_16&utm_medium=eNL&utm_content=71
965&utm_campaign=DAILY_NEWS

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com