San Miguel to form new unit for Angat hydropower

MANILA, Philippines - Highly-diversified conglomerate San Miguel Corp. (SMC) will form a new unit to handle its investment in the Angat hydro powerplant, a company disclosure to the Philippine Stock Exchange (PSE) said.

At the same time, SMC said its board also authorized the management of Angat “to discuss, negotiate, and to enter into a joint venture with K-Water Resources Corp., under the terms and conditions favorable to the company.”

SMC said the new entity would undertake the administration, rehabilitation, operation and management of the hydropower facility.

Last month , SMC announced plans to form a joint venture with K-Water for the Angat plant. K-Water is currently negotiating to bring down the $440.88-million price tag on the plant, citing the state of the facility as well as several changes the government put in the agreements signed by both parties.

K-Water won the bidding in 2010 for the 218-megawatt plant, which sources its power from the Angat Dam in Bulacan.

The Korean water firm said it wants to “achieve the same level of benefits expected” in its 2010 bid for the power plant and wants the plant’s Auxiliary Units 4 and 5 to be included in the takeover. The auxiliary units are owned by the Metropolitan Waterworks and Sewerage System.