FORT Pilar Energy, Inc. has transferred its right to buy the government’s 650-megawatt Malaya thermal power plant in Pililla, Rizal to its subsidiary Belgrove Power Corp.
In a statement issued on Monday, state-run Power Sector Assets and Liabilities Management Corp. (PSALM) said it had approved Fort Pilar’s request to assign the right to Belgrove.
“PSALM considered the request for assignment only after ascertaining the assignee’s juridical existence and financial capability through a rigorous evaluation process and upon obtaining Fort Pilar’s acceptance of the additional conditions that it will become…liable with Belgrove,” PSALM President and Chief Executive Officer Irene Besido-Garcia said.
The next step in Malaya plant’s privatization is the filing of the required documents with the Philippine Competition Commission (PCC), which will issue a certificate of non-coverage. PSALM will be the one to secure the certificate.
“Within two business days from the receipt of clearance from PCC, PSALM will proceed with the issuance of certificate of effectivity to Belgrove,” the company said.
A closing date will be set within 30 days from Belgrove’s receipt of the certificate of effectivity.
Last month, PSALM declared Fort Pilar as the winning bidder after it submitted the highest offer of P3.12 billion for the plant and its underlying land. The offer is higher than the minimum price set by the state firm at P1.84 billion.
Fort Pilar subsequently passed the post-qualification process on June 2.
Joseph Omar A. Castillo, the firm’s chief executive officer, earlier said that Fort Pilar would build a “modern” energy facility in the plant’s location. The project is aimed at boosting power supply in Luzon.
According to the Department of Energy, PSALM was shelling out P1.2 billion annually to maintain the Malaya plant. The firm previously sought approval to pursue a negotiated sale for the asset after years of failed auctions. — Angelica Y. Yang
