PSALM charges 12% interest on amortized payment for Genco assets
Monday, April 17, 2006
By MYRNA M. VELASCO
A 12 percent interest charge will be imposed on the amortized portion of the purchase price for the divested generation assets of the National Power Corporation.
This has been the mechanism drawn up by the Power Sector Assets and Liabilities Management Corporation (PSALM) on the deferred payment mechanism for the Gencos; in which the 60 percent balance shall be amortized over seven years.
The upfront payment at the asset’s turnover is 40 percent of the tender of the winning bidder.
"The remaining/deferred amount is amortized with fixed and equal semi-annual payments for a period of 7 years, a straight line amortizing…interest charged at 12 percent," PSALM president Nieves L. Osorio told the Joint Congressional Power Commission.
Given previous questions raised on the competence of asset takers to operate generation plants, PSALM also set new technical criteria on bidders.
"Bidder must have experience in operating a generating asset," Osorio said.
However, in case that such qualification cannot be complied with by the interested party, PSALM noted that the remedy would be for the winning bidder "to secure the services of a generation asset operator or personnel."
On financial requirement, PSALM wants that the bidder’s minimum net asset or market capitalization to be relative to the size of the asset it is going to acquire.
A review of qualifications of the interested buyers of the NPC assets would reveal that these firms are a mix of energy companies; diversified entities engaged in real estate and telecommunications; manufacturing, engineering and even consultancy services.
posted by philpower @ 2:34 PM,
