LISTED company SPC Power Corp. announced yesterday it will turn over the Naga Power Plant Complex (NPPC) to the Power Sector Assets and Liabilities Management Corp. (Psalm) after the latter turns over the P1.143 billion it paid to purchase the complex in 2014.
“We are now in talks with Psalm for the protocol of the turnover,” said SPC Power Corp. chairman Alfredo Henares at the sidelines of the company’s annual stockholders’ meeting yesterday.
“The transaction was considered null and void, so what’s gonna happen now is we will return it back to Psalm and Psalm would return back our funds plus any necessary expenses that we had,” explained Henares, adding that they already completed various feasibility studies from environment to engineering, economic and market studies.
SPC Power’s purchase of the 153.1-megawatt NPPC from Psalm last Sept. 25, 2014 through public bidding was found null and void by the Supreme Court (SC). The SC denied the attempts of the firm to seek a reversal of the ruling.
Last week, AboitizPower’s subsidiary Therma Power Visayas, Inc. (TPVI) received the certificate of effectivity (COE) from Psalm to initiate its purchase of NPPC in the City of Naga, Cebu.
With the NPPC project already halted due to the Supreme Court decision, Henares said the company has set its sights on other power project opportunities.
“New hydro power plant projects are presently being considered in the Visayas and other parts of Luzon,” he said.
SPC Power ended 2017 with a total income of P1.677 billion, down by 6.2 percent from last year’s level, due mainly to the impact of the power system disturbance that hit Visayas in July 2017, coupled with the expiration of the income tax holiday previously enjoyed by a major associate.
“The road ahead remains to be challenging. However, the group expects continued growth,” said Henares.
He anchored the company’s favorable outlook on the sustained improvements in the reliability and availability of existing power facilities; the anticipated commercial operation of power barge 104 (PB 104) in the second quarter of this year; and “vigorous but careful pursuit of new opportunities.” PB 104’s total capacity is 26 megawatts and workers recently completed its barge rehabilitation and major overhauling of three units. One overhaul is ongoing.
“The facility is now undergoing certification tests in preparation for its commercial operation this year,” said Henares.
SPC said it will continue to pursue businesses in coal-fired power plants, power barges, biomass, hydro, and geothermal power plants.