The Power Sector Assets and Liabilities Management Corp. (PSALM) has awarded the 0.8-megawatt (MW) Amlan hydroelectric power plant to Filipino firm ICS Renewables Inc.
ICS Renewables is a newly-incorporated company engaged in the manufacture of alternative fuels. Last December, it offered $230,000 for the Visayas-based power facility in a bidding conducted by PSALM.
The issuance of the certificate of effectivity (COE) to ICS Renewables affirms the Asset Purchase Agreement (APA) and the commencement of the 270-day deadline for PSALM and ICS Renewables to complete their respective closing deliverables and the conditions precedent for the Amlan sale.
The COE obligates PSALM and ICS Renewables to execute the provisions stipulated in the APA.
One of the provisions requires ICS Renewables to put up a performance bond of $23,000, which is equivalent to 10 percent of its purchase price for the Amlan asset, within 10 days from the agreement’s effective date.
The amount exceeded the reserve price set by the PSALM board for the generating asset.
ICS Renewables is also involved in acquiring, developing, owning, leasing, subleasing, operating and managing real and personal properties using alternative fuels and other environment-friendly device or equipment.
Located in Sitio Pasalan, Bgy. Silab, Amlan, Negros Oriental, the hydropower plant is the first power facility to be constructed in the province. It is designed to operate as a base-load plant, supplying power to the town of Amlan and nearby villages.
The sale of the Amlan plant highlighted the government’s successful power privatization program for 2008.
After the disposal of Amlan, PSALM successfully bid out more than its targeted 70 percent of the National Power Corp.’s generating assets in the Luzon and Visayas grids. PSALM achieved its 2008 privatization goal after successfully selling the 146.5-MW Panay and 22-MW Bohol power plant package last November.