Pending case may hobble turnover of Ilijan plant to SMC unit

By Myrna M. Velasco – December 5, 2018, 10:00 PM
from Manila Bulletin

A pending case on the P20-billion contract cost claims against the privatized power supply contract of the 1,200-megawatt Ilijan gas plant may hobble its turnover to prospective owner South Premiere Power Corporation (SPPC) by year 2022.

PSALM President Irene Joy B. Garcia

In an interview with reporters, Power Sector Assets and Liabilities Management Corporation (PSALM) President Irene Joy B. Garcia admitted that the unresolved legal case could be a hurdle to the asset’s turnover if no court decision will be rendered at the lapse of the Ilijan plant’s build-operate-transfer (BOT) contract with government.

Being the winning bidder of the Independent Power Producer Administrator (IPPA) contract of the Ilijan plant, San Miguel Corporation subsidiary SPPC should already be the rightful owner of the gas-fired power facility by year 2022.

“Our position is: there is a breach, so strictly speaking, we cannot turnover. On their (SPPC’s) part, they’re saying there’s no breach, so they sought for a TRO (temporary restraining order)/injunction and they got it. So at the end of the day, the Court will have to ascertain how to move forward,” Garcia stressed.

Given the nearing timeline and required operational winding down of plant operator Korea Electric Power Corporation (Kepco) prior to turnover, questions are already raised how PSALM shall be resolving the ownership changeover concern.