Belgrove Power cleared to acquire Malaya plant in Rizal | Inquirer Business
Close  

Belgrove Power cleared to acquire Malaya plant in Rizal

Belgrove Power Corp., a subsidiary of Fort Pilar Energy Inc. (FPEI), has assumed the right to purchase the 650-megawatt Malaya thermal power plant and the land on which the facility stands in Rizal province, according to the Power Sector Assets and Liabilities Management Corp. (Psalm).FPEI won a round of negotiations on the sale held in May with its offer of P3.12 billion that was significantly above the minimum bid price of P1.84 billion.

The sole competitor for Malaya’s negotiated sale was the Ayala group’s AC Energy Corp., whose offer was P2.22 billion.

ADVERTISEMENT

Psalm said in a statement that based on the terms of Malaya’s privatization process, the winning bidder may assign its right to purchase to its wholly owned subsidiary.

“Psalm considered the request for assignment only after ascertaining the [Belgrove’s] juridical existence and financial capability through a rigorous evaluation process and upon obtaining FPEI’s acceptance of the additional conditions that it will become solidarily liable with Belgrove for any and all obligations of Belgrove as buyer under the APA (asset purchase agreement),” Psalm president and chief executive Irene Besido-Garcia said.

FEATURED STORIES

Garcia said the next step in the privatization process was the filing of all the required documents with the Philippine Competition Commission for the issuance of a certificate of noncoverage. Also in May, FPEI chief executive Joseph Omar Castillo said they placed great value on the strategic location of the Malaya plant—Pililla, Rizal—“that lies at the very heart of the Luzon grid.”

“We envision a modern energy facility in the site to strengthen the power situation in Luzon,” Castillo said.

FPEI has invested more than P5 billion in building energy storage facilities in the Zamboanga peninsula to help address the voltage issues in that region. INQ

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Belgrove Power Corp., Business
For feedback, complaints, or inquiries, contact us.

Curated business news

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.



© Copyright 1997-2022 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.