By Myrna M. Velasco
The Supreme Court (SC) has junked with finality the motion for reconsideration of SPC Power Corporation, hence, paving the way for the award of the 153.1-megawatt thermal plant to the Aboitiz group.
In a disclosure to the Philippine Stock Exchange (PSE), Aboitiz Power Corporation has noted that on notice of judgment dated November 28, 2016, “the Supreme Court denied SPC’s urgent motion with finality.”
That had been in reference to the urgent motion of SPC seeking to refer the Naga privatization case to the SC en banc. An earlier ruling of the high court already stated the award of the Naga plant to Therma Visayas Power, Inc. (TVPI) of the Aboitiz group, which effectively nullified the earlier turnover of the plant to SPC Power.
Specifically, it directed asset seller Power Sector Assets and Liabilities Management Corporation (PSALM) to reinstate the notice of award (NoA) that was set for TVPI dated April 30, 2014.
This was previously cancelled because of the right-to-top provision set forth in the bidding terms that had been exercised by SPC Power relating to its land lease agreement (LLA) with PSALM and its precursor firm National Power Corporation.
“The notice of award in favor of the respondent (TVPI) is reinstated, excluding the portion therein granting to SPC the right to top,” the earlier SC decision has stipulated.
The high court further directed respondent PSALM “to execute the NPPC-APA (Naga Power Plant Complex- Asset Purchase Agreement) and NPPC-LLA in favor of respondent TVPI with dispatch.”
When that ruling was issued by the high court, PSALM indicated that it will ask the Department of Energy (DOE) as to its next step as to the asset’s final divestment.
The high court rendered that the Asset Purchase Agreement (APA) previously executed with SPC Power, following its exercise of its right-to-top option, needs to be set aside and invalidated.
The state-run firm previously indicated that it has been opting for a rebid of the asset, but with the SC verdict, it might already need to abandon that plan.
From The Manila Bulletin