Tuesday, July 31, 2007 Psalm set to pay off some of Napocor’s debts
THE Power Sector Assets and Liabilities Management (Psalm) Corporation will use 40 percent of the upfront payment of the winning bidder for the 600-megawatt (MW) Masinloc power plant to settle some of the loans of the National Power Corporation (Napocor), according to Psalm president Jose Ibazeta.
Masinloc Power Producers Company Ltd. (MPPC), a consortium led by AES Corporation of Singapore, is set to give US$368.8 million as upfront payment for the Masinloc plant.
Napocor has an estimated US$6 billion in loans as of December 2006.
The MPPC will give the upfront cash payment after all deliverables including administrative obligations, permits and issuances have been reviewed and validated.
Psalm said they would need at least four months to complete the necessary documents for the transfer of Masinloc power plant to MPPC.
Ibazeta said the remaining 60 percent will be paid by MPPC within seven years. But the winning bidder of Masinloc has an option to pre-pay the bid price of US$930 million.
Psalm will get two percent or US$8 million from the US$930 million to cover for rental and auction price. (MSN/Sunnex)
