South Korean firm defends Angat power plant deal

MANILA, Philippines - A South Korean government-owned firm has opposed a petition in the Supreme Court (SC) seeking to void a deal with the government to operate the 218-megawatt hydroelectric power plant at Angat Dam in Bulacan.

In a manifestation, the Korea Water Resources Development Corp. (KWRDC) said it had complied with all requirements set by the state-run Power Sector Assets and Liabilities Management Corp. (Psalm) in winning the $440.8-million project.

The KWRDC said it took part in the privatization process of the Angat power plant by submitting its letter of interest, executing a confidentiality agreement and an undertaking in the forms provided by Psalm, and paying a no-refundable fee.

“KWRDC respectfully manifests that its participation in the public bidding for the purchase of the generation asset has been guided at all times by an abiding respect for the Constitution and laws of the Philippines,” read the manifestation.

KWRDC said it was declared qualified to join the bidding by Psalm, which is mandated under Republic Act 9136, the Electric Power Industry Reform Act, to privatize all the assets of the National Power Corp. (Napocor), including the Angat power plant.

It won the bidding after submitting the highest bid, the firm added.

KWRDC said in submitting its bid, it merely relied on the mandate and experience of Psalm in the conduct of public bidding for the privatization of the generation assets of Napocor, and that it had no reason to question the legality of the process.

“KWRDC submits that it is Psalm which is best able to respond to the points raised in the petition by way of the required comment and, for this reason, KWRDC is submitting only a brief manifestation in lieu of a comment on the petition,” read the manifestation.

“Should KWRDC, however, determine in the course of the proceedings that it is essential for KWRDC to respond to some points raised in the petition, KWRDC will submit the appropriate pleadings at the proper time to assist the honorable court in arriving at a definitive resolution of the instant petition,” it further stated.

KWRDC urged the SC to immediately resolve the petition to further strengthen and enhance the investment environment in the country.

The South Korean firm submitted the manifestation in response to a petition questioning the bidding process last Jan. 11 for supposed violations of the Constitution, law and due process.

Petitioners Initiatives for Dialogue and Empowerment Through Alternative Legal Services Inc. (Ideals Inc.), Akbayan Citizen’s Action Party, Alliance of Progressive Labor and Akbayan Rep. Walden Bello alleged that Psalm acted with grave abuse of discretion when it started the bidding process for the HEPP without providing the public important information in violation of Presidential Decree 1445 or the Auditing Code of the Philippines and EPIRA.