K-Water starts CSR project in Bulacan

MANILA, Philippines - Korea Water Resources Corp. (K-Water) has started a community project in Bulacan ahead of its takeover of the 218-megawatt Angat hydro electric power plant in the province next month.

National Power Corp. (Napocor) president Ma. Gladys Cruz-Sta. Rita said the South Korean firm has already started its corporate social responsibility for the Dumagats of Angat.

The company is set to take over the dam on Sept. 1.

Specifically, K-Water inaugurated the P1.7 million water supply and solar power systems in Dike Elementary School situated within the Angat Watershed Reservation and attended by Dumagat school children.

“With these facilities, our Dumagat children can learn more and together with their parents, remain active partners of Napocor in preserving the watershed,” Sta. Rita said.

The water supply system is expected to generate 900 watts of energy, enough to power up the lights, a television and a computer set for the school.

The Power Sector Assets and Liabilities Management Corp. (PSALM), the government corporation tasked to privatize state-owned power assets, said the full turn over of the plant is scheduled September 1.

This after the government corporation obtained the approval of the Bangko Sentral ng Pilipinas (BSP) for the registration of K-Water’s $500 million bridge loan from the Korean Exim Bank for the takeover.

The BSP manages the country’s external debt.

PSALM issued the certificate of effectivity (COE) to K-Water in September last year and had targeted to close the sale within 270 days from the issuance of the COE. It conducted a bidding for the $440.88 million facility in 2010.

K-Water topped the bidding but was unable to take over the plant due to thorny issues including court hurdles raised by non-government organizations (NGO) on the foreign takeover of a power asset.

The Supreme Court last year upheld the privatization of the power plant but K-Water had negotiated with the government for a lower price tab on the facility, saying that it wanted the same level of benefits expected in its 2010 bid.

Energy Secretary Carlos Jericho Petilla and K-Water officials have been in talks for months before finally reaching an agreement, which led to the awarding of the COE in September last year.

In the end, K-Water agreed to the original bid price of $440.88 million. K-Water partnered with diversified conglomerate San Miguel Corp. to run the power facility.