SNAP, a consortium made up equally of Aboitiz Power Corp. of the Philippines and Norway’s SN Power purchased the Philippines’s largest hydroelectric plant in December for a winning bid of 530 million dollars declared by The Power Sector Assets and Liabilities Management Corporation (Psalm).
The 360-megawatt Magat power plant is located in the northern province of Isabela. It has the largest generating capacity among the operating hydroelectric power plants on the sale block.
Under the conditions of the sale, SNAP has to pay 40 percent of the bid price or P212 million upfront with the rest coming in regular payments.
The consortium is also required to post a performance bond equivalent to 2% of the purchase price. The performance bond will be reduced every year equivalent to 2% of the aggregate amount of the deferred payments.
The Magat power plant is the second facility bidded out by Psalm this year after the successful privatization of the 112-megawatt Pantabangan-Masiway Power Complex last September, which has been turned over to its new owner First Generation Hydro Power Corporation.
Officials of SNAP were quoted in the statement as saying they were planning to bid for other power plants in the Philippines as well.
