Suez Energy to pay in full Calaca purchase price

The government will exceed more than $3-billion mark on privatization proceeds if Suez Energy pays in full this year.

Power Sector Assets and Liabilities Management Corp. (PSALM) said it is optimistic that Emerald Energy Corp.,  the corporate vehicle used by French firm Suez Tractebel to pruchase the 600-megawatt Calaca power plant, will be able to pay up within the year.

“We will close the deal within the year. (Suez) has indicated to pay in full,” Ibazeta said. Suez’s submitted a bid price for Calaca of $787 million in the auction conducted last Oct. 16, 2007.

PSALM president Jose Ibazeta, however, admitted that they have yet to complete their “deliverables” before the payment will be made by Suez.

He said included in these deliverables that PSALM has to accomplish is getting the consent from the National Power Corp. (Napocor)’s lenders.

Ibazeta said they have set a sunset date for them to complete the deliverables by today.

The PSALM official, however, said aside from the creditors’ consent they have yet to thresh out other issues. He described these as “general issues” without elaborating.

Ibazeta also did not say if PSALM would be setting another date if these deliverables are not accomplished on the given sunset date.

“It’s still within our jurisdiction to determine the date, which is most advantageous to PSALM.  We have secured creditor’s consent,” Ibazeta said.