Nene seeks early rebidding for Masinloc power plant

Senate Minority Leader Aquilino Pimentel Jr. urged the government to start as soon as possible the rebidding of the 600-megawatt Masinloc power plant in Zambales instead of giving YNN Pacific Consortium another 30 days to settle the $227-million downpayment it failed to pay after three extensions.

Pimentel said YNN Pacific lost its right to acquire the power plant when the Power Sector Assets and Liabilities Management (PSALM) Corp. confiscated its $14-million performance bond.

"The duty now of PSALM is to ensure that another bidding process is done and that the bidders are qualified pursuant to law and not according to the clout of their political backers," he said in a statement.

Pimentel stressed that PSALM’s sudden decision to give YNN Pacific another 30 days to settle its obligation undermines the government interest and violates the provision of the agreement that the last deadline given to the company (June 30) cannot be extended.

The senator doubts the validity of the reported takeover of YNN Pacific by Ranhill Berhad, a Malaysian firm principally owned by businessman Sunny Sun, reportedly for $8 million.

According to Pimentel, Ranhill Berhad could not buy out YNN Pacific just like that because YNN’s asset purchase agreement with PSALM for Masinloc prohibits it from transferring its rights to another investor.

The asset purchase agreement provides that YNN "shall not, at any time, from award date until the full payment date liquidate, wind up, dissolve or otherwise, transfer or dispose of all or substantially all of its property, assets and business." — Christina Mendez