First Gen still thirsting for Angat plant
First Gen Corp. of the Lopez group is still interested in acquiring the 246-megawatt Angat hydroelectric power plant in Bulacan, as it hopes for an immediate resolution of a Supreme Court case that will lead to the sale of the crucial facility.
According to First Gen president Francis Giles Puno, the company expects that the decision to be issued by the Supreme Court will enable First Gen Northern Energy Corp. (FGNEC) to gain ownership of the Angat power plant.
FGNEC—a three-way alliance involving Metro Pacific Investments Corp., Ayala Corp. and First Gen—offered the second-highest bid price during an auction held in 2010, next to foreign firm Korea Water Resources Corp. (K-Water).
“We were the second-highest bidder, and since (the case) is still with the Supreme Court, we are awaiting the decision. As you know, (the project) is a joint venture with the Ayalas and with Metro Pacific, which are both water concessionaires. In our case, we bring in power expertise,” Puno said. “We could optimize that asset to increase generating capacity in the Luzon grid.”
South Korea’s K-Water was declared the highest bidder with an offer of $440.8 million. However, the Supreme Court issued in May 2010 a “status quo ante order” against the sale of the Angat hydroelectric power plant to K-Water.
It also later denied the plea of the Power Sector Assets and Liabilities Management Corp. (PSALM) to lift the restriction.
In 2011, some groups filed a memorandum with the Supreme Court to reiterate their plea to stop the sale of the government-owned Angat hydroelectric facility, for violating the Constitution, the law and due process.
The memorandum was filed by Freedom from Debt Coalition, Initiatives for Dialogue and Empowerment Through Alternative Legal Services Inc., Alliance of Progressive Labor, Akbayan Citizen’s Action Party and Akbayan Representative Walden Bello.
“Petitioners ask this Honorable Court to safeguard the people’s right to water and to access information on government matters involving public interest and, in general, ensure adherence to the pertinent provisions of law and the Constitution,” the 2011 memorandum stated.
Petitioners then stressed that PSALM acted with grave abuse of discretion when it proceeded with the bidding without releasing to the public critical information pertinent to the sale of the public asset, such as terms and conditions.
PSALM, the petitioners added, overstepped its mandate and jurisdiction in unilaterally undertaking the public bidding and sale of Angat facility, and in not offering to sell the power plant to the Metropolitan Waterworks and Sewerage System and National Irrigation Administration.
