Government ready to approve transfer of Mirant assets

The new owners of Mirant Corp.’s assets in the Philippines are not likely to encounter problems in securing the consent of the National Government regarding the transfer of ownership, the country’s top energy official said.

"There seemed to be an understanding that they (Tokyo Electric and Power Co./Marubeni Corp. group) would provide all the requirements of the government. They are managing the transition well," Energy Secretary Raphael P.M. Lotilla said.

The government had earlier asked Mirant to seek prior consent before selling the assets to ensure that the new buyers would be able to run the plant efficiently.

Lotilla earlier indicated that the entry of Tepco-Marubeni in Mirant Philippines Corp. is a welcome development. The group bought Mirant assets for $3.4 billion.

"We welcome the confidence shown in the Philippines by well-known and highly experienced Japanese energy companies through their purchase of Mirant’s power businesses in Luzon. The country undoubtedly had gained through the entry of a set of internationally recognized participants in the Philippine energy sector," Lotilla said.

"While the sale is essentially a private business transaction, we are confident that the Japanese consortium is financially and technically qualified to perform its contractual obligations to the National Power Corp. (Napocor)," he said.

He said this early, the TEPCO-Marubeni consortium has also indicated plans to expand the capacity of the power facilities of Mirant Philippines Corp.

"The group has expressed its commitment to the expansion of its power generation assets in the Philippines , thus helping ensure adequate power supply for the future," he said.

Lotilla said Marubeni is an old hand in the Philippines and has been doing business here since 1909.

"Marubeni’s expansion is as most welcome as the new entry of TEPCO in the power sector. Marubeni owns stakes in several power generation companies while TEPCO is a well established energy company in Japan," he said.

The energy chief said the buyers of Mirant assets have expressed their commitment to continue its social development program for the country.

"In the same manner that Mirant had shown its commitment to the President’s rural electrification program, the government also anticipates that the new owner will continue and deepen this social commitment to help improve the economy in the rural areas," he added.

The assets of Mirant Philippines include the 1,218 megawatt coal fired power plant in Sual, Pangasinan, 735 megawatt coal fired power plant in Pagbilao, Quezon and 20 percent stake in Ilijan, Batangas natural gas facility.