MANILA, Philippines - The closing of the sale of the 218-megawatt Angat hydropower plant in Bulacan to K-Water Resources Corp. of Korea has been delayed anew because of the garnishment slapped on the assets of National Power Corp. (Napocor).
Nevertheless, the Power Sector Assets and Liabilities Management Corp. (PSALM), the government corporation tasked to privatize state-owned power assets, is still aiming to close the sale within the year.
“It’s difficult to give a date again now because of the DAMA case. Our target (now) is within the year,” PSALM president Emmanuel Ledesma told reporters.
Napocor lost a class suit filed against it by its former drivers and mechanics and has been ordered by the Supreme Court’s third division pay the retrenched employees P60.2 billion in back wages and wage adjustments.
Former Napocor employees who were retrenched included members of the company’s Drivers and Mechanics Association (DAMA). They contested the retrenchment and filed a case before the court.
In 2006, the High Court ruled in favor of the more than 8,000 employees and upheld their claim of damages totaling to P34.7 billion.
“This amount swelled to P60.2 billion in 2014 as computed by the ex-officio Sheriff of the Regional Trial Court of Quezon City. In addition to the claim is the P1.8 billion Sheriff’s fee,” according to Napocor.
The Supreme Court issued a notice of garnishment on Napocor’s assets, which included the fee of K-Water for the Angat sale.
However, the High Court lifted the garnishment last week but Napocor through PSALM would still have to settle the damages through other means.
“Everything is ok already (with the closing of the sale) as long as there are no sudden issues like the DAMA,” Ledesma said.
A government source also said the period for K-Water to draw a loan to pay for its fee to PSALM has also expired, also contributing to the delay in the closing of the sale.
“K-Water will seek an extension from the Bangko Sentral ng Pilipinas (to draw the loan),” a source said.
The BSP, which manages the country’s external debts, has to approve all loans from foreign sources.
PSALM earlier targeted to close the sale of Angat by September 1 before the DAMA case happened.
PSALM sold the 218-megawatt K-Water Resources Corp. of Korea, which is working on securing a $500 million bridge loan from the Korean Exim Bank for the takeover.