MANILA, Philippines - State-run water utility firm Korea Water Resources Corp. (K-Water) is looking at acquiring the 218-megawatt (MW) Angat hydroelectric power plant, Power Sector Assets and Liabilities Management Corp. (PSALM) president Emmanuel Ledesma told reporters.
K-Water had submitted an offer of $440.8 million to operate the Angat plant during a bidding last April 28, 2010. However, the Korean firm submitted a bid without a local partner.
But the sale of the hydro assets remain in limbo as the Supreme Court barred PSALM from selling the Angat plant in May last year on a petition filed by cause-oriented groups and lawmakers citing violation of the Constitution.
“There’s a pending case on the Supreme Court on the nationality issue. We’re waiting for the decision,” Ledesma said.
PSALM claims that the privatization of the Angat plant stringently followed the provisions of the Electric Power Industry Reform Act (EPIRA). Only the power component of the Angat hydropower plant was privatized and the Angat Dam remains the property of the government.
It said the privatization of the Angat hydropower plant would not give K-Water the sole authority and discretion to manage the use of water from the Angat Dam.
The National Water Resources Board would strictly regulate the use of water based on the Water Code or Water Protocol.
“The regulatory environment under which K-Water will operate should also eliminate any apprehension about K-Water threatening national security,” PSALM said.
K-Water has renewed the bid bond for the Angat plant, which is equivalent to one percent of the bid offer equivalent to about $4.408 million.
The bid bond is a letter of credit (L/C) issued by the bank but not directly paid to PSALM.
K-Water vice president Gee-Hwan Park said last year that they are willing to wait for the Supreme Court decision.
“We are willing to wait for the proper judgment of the SC... We will wait and will not pull out,” he said.
K-Water is presently studying the possibility of building a $300-million Kapangan hydro project in Benguet.
It also conducted a feasibility study on flood control measures in Mt. Pinatubo devastated areas and rehabilitation of school buildings funded by Korea International Cooperation Agency.
K-Water is engaged in the construction, operation and management of multi-purpose dams and multi-regional/local water supply systems in Korea. It oversees 15 multi-purpose dams that supply water, control floods and generate electricity.