Aboitiz unit makes last ditch effort for Cebu plant

MANILA, Philippines - Therma Power Visayas, Inc. (TPVI), a subsidiary of AboitizPower, is making a last ditch effort to own and operate the 153.1 megawatt Naga Power Plant in Cebu.

In a letter to the Power Sector Assets and Liabilities Management Corp. (PSALM), the government corporation tasked to privatize state-owned power assets, TVPI asked the government to recall the Notice of Award and Certificate of Effectivity given to Salcon Power Corp. (SPC).

Early this month, the PSALM’s board, chaired by Finance Secretary Cesar Purisima, awarded the Naga plant to Salcon Power after the company exercised its Right to Top.

In April, PSALM awarded the Naga facility to TPVI but Salcon Power, which has a 2009 to 2020 land lease agreement with the government for the Naga facility decided to exercise its Right to Top by paying PSALM P1.143 billion for the facility.

In its letter, TVPI asked PSALM to recall its decision until the Supreme Court issues its decision on a case filed by Sen. Sergio Osmeña.

In a petition for certiorari before the high court, Osmeña argued that the Right to Top should be held invalid as it defeats the purpose of a fair and transparent bidding for a government asset.

In its letter to the PSALM board, TPVI expressed its dismay.

“We frankly are amazed and deeply disappointed by the manner and haste in which the PSALM Board of Directors decided to award the contracts for the privatization of the Naga Power Plant Complex to SPC Corp. despite the myriad of contentious issues that remain unanswered and also pending with the Supreme Court”, said Raymond Cunningham, AboitizPower’s Executive Director for Business Development.

Sought for comment, PSALM president Emmanuel Ledesma Jr. said it would be up to PSALM board to act on TVPI’s letter.