K-Water Closer to Bagging Angat Plant Deal
Korea Water Resources Corp. (K-Water), the leading water resources and power firm in South Korea, on Thursday signified its agreement to the water protocol governing the operations of the 246 MW Angat hydropower plant in Bulacan. This was formalized in a memorandum of agreement signed by representatives of K-Water and state-run Power Sector Assets and Liabilities Management Corp., according to PSALM president and CEO Emmanuel Ledesma Jr.
This move allowed K-Water to move a step closer to acquiring the Angat hydropower facility, three years after it won the bidding conducted by PSALM. In an interview, Ledesma explained that both parties decided to “re-execute” the documents governing the sale of the Angat facility to K-Water, as the Supreme Court required some changes in the said documents.
However, no definite schedule was given for the turnover of the Angat facility, as Ledesma noted that both parties would continue to work earnestly for the privatization of the state-owned power asset.
The Supreme Court last year rendered as valid and legal the sale of the Angat power plant to K-Water, more than two years after the South Korean firm submitted its bid to PSALM.
It April 2010, PSALM announced that K-Water had submitted the highest bid of $440.8 million in the auction for the Angat power plant, besting some of the biggest power industry players in the country including First Gen Northern Energy Corp., San Miguel Corp., SN Aboitiz Power-Pangasinan Inc., Trans-Asia Oil and Energy Development Corp. and DMCI Power Corp.
In May 2010, however, the Supreme Court issued a “status quo ante order” effectively blocking the planned privatization of Angat Dam’s hydroelectric power plant. It also later denied the plea of PSALM to lift the restriction.