PSALM: K-Water still wants to buy Angat power plant

Korea Water Resources Corp. (K-Water), the leading water resources and power firm in South Korea, is still interested in buying the Angat hydroelectric power plant in Norzagaray, Bulacan, a government official said this weekend. Power Sector Assets and Liabilities Management Corp. (PSALM) president Emmanuel Ledesma said that K-Water is still interested in acquiring the Angat plant even though it would take the Supreme Court years to decide whether K-Water can buy the 218-megawatt facility. “There’s a pending case at the [SC] on nationality issues," Ledesma said. In May, the SC halted PSALM — the government’s power sector privatization arm — from consummating the sale of the Angat plant to K-Water after cause-oriented groups and lawmakers said foreigners cannot wholly own a company in the Philippines. K-Water has the “option to walk away from the sale, but they seemed to be very interested," Ledesma said. He pointed out that PSALM will have to wait for the SC’s ruling on what steps to take on the privatization of the Angat power plant. “If the SC may declare the sale as null and void, it may have guidance whether there will be rebidding or the second bidder will have to match the bid. We’ll have to wait for guidance from the SC and the PSALM board," Ledesma said. PSALM had argued that the privatization of the Angat plant strictly followed the provisions of the law — specifically the Electric Power Industry Reform Act of 2001 — which was transparent and objective. PSALM said that only the power component of the Angat plant will be privatized and the dam will remain government property. The privatization of the power plant will not give K-Water sole authority and discretion to manage the use of water from the dam, PSALM pointed out. PSALM noted that the National Water Resources Board will regulate the use of water. “The regulatory environment under which K-Water will operate should also eliminate any apprehension about K-Water threatening national security." — JE/VS, GMANews.TV