|
The Power Sector Assets and Liabilities Management
(PSALM) Corp. has turned over the decommissioned Manila Thermal
Power Plant (MTPP) to its new owner, Malaysian firm Gagasan Steel.
In simple rites held at PSALM’s
Makati office yesterday, Froilan Tampinco, PSALM vice president for
asset management and electricity trading, officially awarded the
ownership of the plant to the firm, which paid half of MTPP’s
purchase price of $2.5 million as performance bond.
The purchase price covers the
plant equipment, components, auxiliaries and accessories of the MTPP,
but excluding the underlying land of the facility.
Under the terms of the sale,
Gagasan Steel will be responsible for dismantling the plant
equipment and site cleanup.
Tampinco said the actual start of
the project and mobilization should not go beyond 270 days. The
period covers the compliance by both parties of their respective
deliverables as stated in a sale agreement entered into by both
parties and the completion of the payment of the purchase price.
As soon as the required
deliverables have been met, Gagasan Steel will be given six months,
subject to extension, to recover scrap materials from the plant.
PSALM, however, said that Gagasan
Steel should first secure the necessary permits, licenses or
accreditation from relevant government agencies such as the
Department of Environment and Natural Resources for the dismantling
of the structures and equipment. The environmental cleanup of the
site has to follow existing environmental laws and regulations as
well.
Gagasan Steel, an affiliate of
Malaysia-based Gagasan Steel Sdn Berhad, is an import-export
handler, dealer and trader of scrap metals and has been in operation
since 2002. Its local clients include National Power Corp. and the
Manila Electric Co.
PSALM, which is tasked to
privatize government’s power plants, decided to conduct
negotiations with Gagasan Steel after the third bid exercise held in
early February was declared a failure. The company was the only
bidder to pass the technical qualifications, but the firm fell short
of the reserve price.
Located at Isla de Provisor, Paco,
Manila, the MTPP is the first decommissioned plant sold by PSALM on
an “as is where is” basis.
--Euan Paulo C. Añonuevo
|
