YNN readies downpayment for Masinloc plant

YNN Pacific Consortium Inc. is ready to deliver its committed $222-million initial cash payment for the purchase of the 600-megawatt (MW) Masinloc coal-fired power plant in Zambales, industry sources said.

Sources privy to the ongoing talks between the consortium and the state-run Poser Sector Assets and Liabilities Management Corp. (PSALM) said the former has "no choice but to pay," although there would be some minor "realignment of participation."

"The investors who have some concerns may lower their investments but the other members of the group may be willing to increase their participation in the power plant," a source said.

PSALM has given the YNN group, the winning bidder for the Zambales-based coal-fired facility, up to tomorrow (March 31) to deliver the cash, upfront or the $11.14-million performance bond posted by the consortium will be forfeited in favor of PSALM.

The performance bond will expire on August 2006 after PSALM allowed a four-month extension of the bond issued by Bank of China (Hong Kong) Ltd. which was supposed to lapse on April 7 this year.

Industry sources have speculated that YNN would backtrack on paying the upfront cash after it raised a number of concerns including political uncertainties that may affect its investment in Masinloc.

But a consortium insider insisted that they are "committed to working on the timetable as agreed upon with the government."