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Tuesday, August 03, 2021

SBMA approves P750-M lease, revenue shares for power firm

THE Subic Bay Metropolitan Authority (SBMA) recently approved a total of P750 million in lease and revenue shares for One Subic Power Generation Corporation, which operates the 116-megawatt diesel generator plant here for a lease extension agreement of 10 years.

The power firm, a wholly-owned subsidiary of Phinma Energy Corporation, initially committed $3.2 million worth of investments and five per cent variable gross revenue shares (GRS) when it took over the diesel plant in 2011.

The firm’s original contract was effective until 2020, but the amended agreement granted the firm a ten-year extension of its operations until 2030.

Wilma Eisma, SBMA chairman and administrator, signed the new contract with Phinma president and CEO Francisco Viray, and One Subic Power president Rizalino Santos.

During the signing, Eisma thanked the company for being a valued partner of the SBMA and for sharing the commitment for a better Subic community.

“I do appreciate the malasakit that you put in in your business here in Subic and the way you take care of your people. That kind of behavior is important for the future of Subic because your people are also my people,” Eisma told the company officials.

According to the SBMA Business and Investment Department (BID), One Subic Power is one of the biggest revenue sources for the SBMA, having turned in a total of $7.2 million in fixed lease rate, P81 million in gross revenue shares, and P4.4 million in common user service area (CUSA) fees since it started operations in 2011 until 2017.

Meanwhile, the 10-year extension of the firm’s contract would also provide an additional five percent increase in current lease rate for the first five years, and another five percent increase for the remaining five years, for a total of P630 million in lease rates alone.

In addition, the company’s annual gross revenue share (GRS) of P12 million would translate to a total of P120 million over the 10-year extension period, an amount that will be part of the revenue shares given out by the SBMA to neighboring local government units. Ric Sapnu
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