YNN gets new extension
Thursday, July 06, 2006
By Lawrence Agcaoili
The government has not totally shut the doors on YNN Pacific Holdings and its Malaysian partner, Ranhill Power Bhd, giving the consortium another 30 days to complete the down payment of $227.5 million for the 600-megawatt coal-fired Masinloc power plant.
Finance Secretary Margarito Teves told reporters yesterday that the board of Power Sector Assets and Liabilities Management Corp. was weighing if bidding rules would allow the group to make the payment despite the expiry of the June 30 deadline.
This will be the second extension granted by the government to the consortium. The YNN Pacific-Ranhill consortium was given until March 31 this year to pay the amount but the government agreed to extend the deadline on the condition that the performance bond would be raised to $14 million from $11 million.
If the consortium failed to deliver again, Teves said, the PSALM board would decide on the timing of the rebidding for the 600 mw coal-fired power plant in Masinloc, Zambales province.
Teves, who is also chairman of the PSALM board, said the government has decided to call on the $14 million performance bond for the sale of the Masinloc power plant after the consortium failed to deliver the upfront payment of $227.5 million on June 30.
The finance chief said the first extension granted to the consortium was reasonable.
“It was reasonable to grant them the first extension since the government had a good price at $561.7 million and was protected by the increased performance bond. However, PSALM stood firm on the June 30 deadline,” he said.
He said the PSALM board would continue making decisions to ensure “that the Filipino public has ready access to power and energy at the lowest possible price.”
Teves heads the Psalm board with Energy Secretary Raphael Lotilla as vice chairman. Board members include Trade Secretary Peter Favila, Budget Secretary Rolando Andaya, Justice Secretary Raul Gonzalez, Socioeconomic Planning Secretary Romulo Neri and Psalm president Nieves Osorio.
The YNN Pacific and Ranhill consortium edged Lopez-controlled First Generation Holdings in an auction held in December 2004. FirstGen submitted a bid of $274.85 million, way below the reserve or floor price of $388 million set by the government.
posted by philpower @ 7:36 AM,
