SPC Power Corp. has turned over the 153.1-megawatt (MW) gas turbine power plant in Naga, Cebu to the Power Sector Assets Liabilities Management, Inc. (PSALM), ending the legal tussle over the ownership of the asset.
In a disclosure on Monday, July 16, SPC Power said it had executed a joint turnover certificate with PSALM on July 13, 2018, resulting in the listed company turning over the Naga power plant complex to the agency in charge of privatizing the government’s power generation assets.
The move paves the way for Aboitiz Power Corp. to take hold of the complex after years of legal proceedings that ended in its favor.
“Pursuant to the Decision of the Supreme Court in Osmeña v. PSALM et al., declaring as null and void the Asset Purchase Agreement and Land Lease Agreement covering the Naga Power Plant Complex, entered into by PSALM and SPC,” SPC Power said.
Sought for comment, AboitizPower President Antonio R. Moraza said in a text message: “We have to go in and assess [the] condition of existing units and what we will do as future potential.”
He added that rehabilitation is the mostly likely interim next step for the company. — Victor V. Saulon