"We are already in the final stage of our negotiation with Napocor. Hopefully, before the end of the year, we will be able to come up with an agreement," Edison Mission director for business development Asia Pacific Tony C. Hsun said in an interview.
Hsun said they have been talking with officials of the Napocor and the Power Sector Assets and Liabilities Management Corp. (PSALM) since last year.
"Napocor approached us in December 2001. And early this year, we have finally agreed to terminate," he said.
The official said they are just threshing out some remaining issues of the termination agreement such as the reimbursement of the performance bond which is in the form of a letter of credit (LC).
"We are looking at ways on how we will be reimbursed and how much we want to reimburse," he said.
But the Edison official said the group has submitted a proposal to Napocor, but the state-owned firm wants a lower figure.
Aside from Edison, the other member of the consortium for the San Pascual project is Chevron Texaco of US.
The San Pascual project was supposed to take up the remaining 300 megawatts (MW) from the 3,000 MW Malampaya gas project. The 2,700 MW were distributed to Ilijan Power Plant of Napocor and Korea Electric Co. (Kepco), 1,200 MW; Lopez-owned Sta. Rita, 1,000 MW and San Lorenzo, 500 MW.
Hsun said Napocor told them that they won’t be needing San Pascual given the existing excess capacity in the power system.
"We are not discouraged by Napocor’s decision to pre-terminate the contract," he said, noting that Edison Mission would be interested in buying some of the state-run power firms generation assets/companies (Gencos) which will be sold next year.
"We are interested to bid for some gencos," the company executive said. "We believe in the Philippine government. We are looking for long-term investments."