San Miguel Corp. will pursue K-Water tie-up

Posted at 08/30/14 10:48 AM

MANILA - SAN Miguel Corp. (SMC) on Friday said it will pursue a team up with K-Water Resources Corp. of Korea for the 218-megawatt (MW) Angat hydropower plant project in Bulacan despite delays in the turnover of the facility.

“Yes, we are still interested,” SMC President Ramon Ang said.

K-Water, in April 2010, won the bid to privatize the facility. It placed a bid of $440.8 million.

The sale was supposed to be finalized March of this year. However, regulatory approvals took a long time before these were secured. In particular, Power Sector Assets and Liabilities Management Corp. President Emmanuel Ledesma had said that the necessary business permits and the Bangko Sentral ng Pilipinas registration of K-Water’s loan have yet to be secured.

There was also a case filed by non-governmental organizations questioning the constitutionality of the transaction with the Supreme Court. This delayed the turnover of the assets to K-water. The high court eventually upheld the sale of the Angat power plant to the Korean company.

SMC will operate and maintain the power plant.

Ang had said that SMC and First Gen Corp. are going to be local partners of K-Water. Together, they will take up 60 percent of a special purpose company that has yet to be formed with K-Water. The remaining 40 percent will be held by K-Water.

The hydroelectric plant is composed of four main units, each with a 50-MW capacity, and five auxiliary turbines. Units four and five are owned by the Metropolitan Waterworks and Sewerage System, which has bid out the rehabilitation of the generating facilities.