Govt wants NAPOCOR nod for Mirant sale
Monday, August 21, 2006
The government reiterated that Atlanta-based Mirant Corp. has to get the consent of the National Power Corp. as regards its independent power producer (IPP) contracts before it could proceed with the sale of its Philippine assets.
"When the Mirant people came to see me, I made it clear to them that the standpoint of the Philippine government is that the consent of NAPOCOR is necessary to ensure that the successor is able to deliver on the obligations under the contract," Energy Secretary Raphael Lotilla said in a statement Monday.
For his part, NAPOCOR president Cyril del Callar said the need for Mirant to get the consent of NAPOCOR is stipulated in the power firm's contract with NAPOCOR and other IPPs.
Sources said government also want to be assured that the package of concessions amounting to $542.84 million (for both Pagbilao and Sual plants) promised by Mirant during the review of the contracts with the IPPS would be honored by the new owner of the plants.
Mirant is expecting sale proceeds of about $2.4 billion to $2.8 billion from the sale of its assets in the country which include its interest in three generating power plants, namely Pagbilao, Sual and Ilijan. Its net ownership interest in these three generating facilities to be sold is 2,203 MW.
The Philippine business contributed $370 million in adjusted earnings before interest, taxes, depreciation and appreciation (EBITDA) in 2005.
Mirant's Philippine assets reportedly drew interest in several companies which includes AIG, One Energy, Mitsubishi, China Light and Power Holdings, Korea Electric Power Corp., Tokyo Electric Power Co., Kyushu Electric Co., Ayala Group, Aboitiz Group and First Pacific Corp./Metro Pacific Corp. led by businessman Manuel V. Pangilinan.
"The government is ensuring that buyers of these assets are qualified to perform the obligations of Mirant Philippines to the NAPOCOR, which include the buyer's maintenance of the IPP (independent power producers) contracts attached to the assets on sale," Lotilla said earlier.
The sale of the Mirant's assets in the Philippines and the Caribbean are expected to close by mid-2007.
posted by philpower @ 9:45 PM,
