Aboitiz bags Ambuklao-Binga plants
SN Aboitiz Power Hydro Inc. (SNAP Hydro), a group led by the Aboitiz family, has won the bidding for the 175-megawatt (MW) Ambuklao-Binga hydropower plant complex with an offer of $325 million.
SNAP Hydro won over the $305 million bid submitted by another bidder, Calaca Power Partners Co. Ltd. led by the US-based AES Corp.
“We are very happy with the results. This is an indication and manifestation of the continuing support of investors on the country’s privatization efforts,” Power Sector Assets and Liabilities Management Corp. (PSALM) president Jose Ibazeta said.
Another supposed bidder, First Gen Hydro Power Corp., decided to defer its participation in the final bid. First Gen recently bagged the government’s 60-percent stake in Philippine National Oil Co.-Energy Development Corp. with a bid of P58.5 billion.
Aboitiz Power Corp. president Erramon Aboitiz said the acquisition of the facilities will boost the company’s initiative to jack up its hydropower plants’ capacity. He said with new plants the gross capacity of their hydro facilities would reach over 600 megawatts (mw).
According to Aboitiz, they would be financing the cost of acquisition through a combination of loan and equity.
This early, he said they are looking at the possibility of expanding the capacity of the Ambuklao-Binga hydro complex by 20 to 30 percent.
With the sale, PSALM is able to sell 42.7 percent or 1,850.4 mw of the National Power Corp.’s generating assets in
For the remainder of the year, PSALM is also set to auction off the 339-mw Palinpinon geothermal power plant and
SNAP Hydro is a Philippine corporation whose 60 percent outstanding capital stock is owned by Manila-Oslo Renewable Enterprise Inc. The rest, or 40 percent, is owned by SN Power Holding Singapore Pte. Ltd.
SNAP Hydro will be declared the winning bidder as soon as PSALM has verified the accuracy, authenticity and completeness of all the bid documents that the consortium had submitted.
PSALM will then issue the notice of award to the consortium to signify that it is the winning bidder for the Ambuklao-Binga plants.
To allay fears and speculations of foul play in the government’s privatization program, PSALM opened the bidding exercise for the Ambuklao-Binga power facilities to media.
PSALM also invited observers from the House of Representatives, private entities, and non-government organizations to give these stakeholders the opportunity to witness and appreciate the whole bidding exercise.
On the allegation that the prequalification process in the bidding for the 25-year concession of the National Transmission Corp. (TransCo) was biased, Ibazeta welcomed any moves by Congress to scrutinize steps taken in line with the TransCo privatization.
“We wish to assure our legislators, investors, and the general public that the privatization process is above-board. We are ready to give our full cooperation in the inquiry. We only hope that this would not result in the further delay of the privatization program,” he said.
PSALM is scheduled to bid out the TransCo concession on Dec. 12 this year.
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