PHILIPPINE conglomerate San Miguel Corp. (SMC) expects to formalize its partnership with Korean firm Korea Water Resources Corp. (K-Water) for the operation of the 218-megawatt (MW) Angat hydroelectric power plant (HEPP).
K-Water invited the SMC to be its main local partner to take up a 60-percent stake in the Angat hydro power plant.
K-Water took over control and operation of the Angat hydro power plant after it was privatized by state-run Power Sector Assets and Liabilities Management Corp. (PSALM).
Once SMC gets a stake in the project, it might still scout for local partners, but with the approval of the Korean firm.
The Angat hydro plant in Bulacan was turned over to K-Water on October 31, 2014 after PSALM received full payment of the final purchase price for the facility.
The government agreed to a discounted price for the Angat HEPP of about $439 million [P19.57 billion] from an original price of $441 million due to the facility’s condition, which had deteriorated during the years the turnover was pending.
K-Water won the bid for the Angat HEPP on April 28, 2010, offering almost $441 million for the rights to operate the facility, besting five other bidders.
Located in San Lorenzo, Norzagaray in Bulacan, the Angat HEPP consists of four main units, each with a 50-MW capacity. The units were commissioned between 1967 and 1968.
PSALM pointed out that the sale merely involves the power plant component of the Angat dam.
“The privatization of the Angat HEPP will not affect the water supply from the Angat reservoir as the Angat dam remains the property of the Philippine Government,” PSALM clarified.