SMC power unit defers IPO plan
SMC power unit lists P15-B bonds on PDEx
over the Ilijan and Sual power plant management contracts. The two coal-fired power plants have a combined capacity of 2,400 megawatts. “With this problem, we cannot conduct an IPO because of Ilijan and Sual,” San Miguel president Ramon Ang said.
PSALM, which manages the assets and liabilities of National Power Corp., terminated San Miguel’s independent power producer administrator agreement on alleged unpaid payments in connection with the 1,200-MW Ilijan combined cycle power plant in Batangas province.
But San Miguel said it had been religiously paying its fees to the government, claiming the issue involved an interpretation of the contract.
The case is pending with the Regional Trial Court of Mandaluyong. San Miguel’s South Premiere Development Corp.
successfully bid for the contract to administer the Ilijan power plant in 2010. The Ilijan natural gas plant was constructed and is owned by Korea Electric Power Corp. under a BoT scheme that will expire by June 4, 2022.
San Miguel, meanwhile, earlier asked the Justice Department to prosecute then PSALM president Lourdes Alzona (now officer-in-charge) for plunder in connection with the alleged P14-billion loss over its 2009 contract to manage the output of the 1,200-MW Sual power plant in Pangasinan.
The Sual plant is the largest coal-fired power station in the Philippines in terms of installed capacity.
It was built under build-operate-transfer scheme that will expire in 2024. Team Energy, a joint venture between Marubeni Corp.
and Tokyo Electric Power Corp., operates the Sual plant. On August 28, 2009, San Miguel Energy Corp. successfully bid for the appointment to be the administrator of the Sual power plant. San Miguel accused Alzona of violating the Anti-Graft and Corrupt Practices Act.
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Also impleaded in the complaint were Suguru Tsuzaki, president of Team Philippines Energy Corp., and Kochi Tamura, executive vice president of Team Sual Corp. San Miguel alleged it did not obtain the contracted capacity of 500 MW per unit from the Sual coal plant because Team Energy’s 100-MW nominal capacity was given priority in accordance with the 2009 agreement on excess capacity. Ang earlier said his company planned to conduct the IPO in the third quarter this year..
SMC Global Power has four operational power plants—three as independent power producer administrator and one joint venture—and greenfield stations in the pipeline.
The diversified portfolio gives SMC Global Power the ability to provide the most competitive and reliable supply offers to customers and fuel the growth of the Philippine economy.
San Miguel announced in 2013 it planned to raise $700 million from the planned IPO in the same year but decided to defer it in 2014. “The equity value of our power generation company is $1.5 billion.
If we sell at least 49 percent, we will raise about $700 million,” Ang said at that time.
Topics: SMC Global Power Holdings Corp.
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posted September 26, 2017 at 07:01 pm by Alena Mae S. Flores