SPC Power Corp. officials report on the company’s accomplishments during the annual stockholders’ meeting. (CDN PHOTO/FERDINAND EDRALIN)
SHOULD the Naga Power Plant Complex (NPPC) be placed on the auction block now , its current operator SPC Power Corp. would be willing to participate in the bidding process anew.
SPC chairman Alfredo Henares told stockholders yesterday that he had informal talks with Power Sector Assets and Liabilities Management (PSALM) Corp. officials and they agreed that the logical step to take is re-bid the complex.
“It is likely that the PSALM would re-bid the plant and if they do re-bid it, we would be interested in participating again,” said Henares.
The Supreme Court nullified last year the sale of the 153-megawatt (MW) complex to SPC Power. About two months ago, the High Court junked SPC’s bid to file a second motion for reconsideration.
Henares said he was not privy to the details on when the government would hold a re-bidding for the power complex, but he said “the sooner, the better.”
Prior to the nullification of the sale of the complex, SPC Power had already come up with plans and studies to dismantle the complex and put up a new plant on the site with a higher capacity.
SPC Power is planning to build two 150-MW coal-fired generating units to replace the old facilities consisting of the 52.5-MW Coal Thermal Power Plant (CTPP) 1 and 56.8-MW CTPP 2 plants as well as the 43.8-MW Cebu Diesel Power Plant 1 composed of six 7.3-MW bunker-fed generating units.
Within one year after the PSALM bid out the complex to SPC Power, Henares said the firm already sent out notices to suppliers and were waiting for their offers when the SC ruling came.
“If the PSALM re-bids, and we bid and win, we’re ready to proceed (with our plans),” Henares added.
The company is also looking at other possible sites in Cebu for coal-fired power plants just in case the re-bidding of the Naga complex doesn’t play out.
“We will be happy to put up another plant in another area. Since we don’t have Naga, we’ll have another,” said Henares.
SPC Power exercised its right to top the P1.089-billion winning bid of Aboitiz-led Therma Power Visayas, Inc. by offering P1.14 billion for the facility in 2014. The asset purchase agreement over the facility was awarded to SPC Power, prompting Sen. Sergio Osmeña III to question the validity of the right-to-top provision and file a petition for certiorari on June 26, 2014.
The SC said SPC Power’s right to top was null and void in a decision on Sept. 28, 2015, resulting in the nullification of the asset purchase agreement and land lease agreement between the PSALM and SPC Power.