MANILA, Philippines – Energy Secretary Carlos Jericho Petilla hopes to seal a compromise deal with the Korean company that won the bidding for the Angat hydropower plant before the end of the year.
“Hopefully by the end of the year, we can come up with a win-win solution,” Petilla said.
Korea Water Resources Corp. (K-Water) is currently negotiating to bring down the $440.88-million price tag on the facility, citing the state of the facility as well as several changes the government put in the agreements signed by both parties.
“What we’re looking for is a win-win solution for everybody and that includes all the players – PSALM (Power Sector Assets and Liabilities Management Corp.), DOF (Department of Finance), K-Water, MWSS (Metropolitan Waterworks and Sewerage System) and DOE (Department of Energy),” Petilla said.
K-Water won the bidding that PSALM conducted in 2010 for the 218-megawatt plant, which sources its power from the Angat Dam in Bulacan.
In 2010, K-Water topped the bidding that PSALM conducted for the 218-megawatt plant, which is fueled by water from the Angat dam in Bulacan.
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In a recent letter to PSALM, K-Water said it wants to “achieve the same level of benefits expected” in its 2010 bid for the power plant and wants the plant’s auxiliary units four and five to be included in the takeover.
The auxiliary units in question are owned by MWSS.
On the back of these complex issues, K-Water wants to reduce the purchase price of the facility.
Petilla, who met with K-Water officials in Korea last month, said the company is still interested in the Angat facility.
“They did indicate but under certain conditions. Everybody’s interested. It’s only the statement ‘under certain conditions’ which make it complicated. So that’s what we’re trying to thresh out right now,” Petilla said.