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Thursday, March 28, 2024

SPC asks court to reconsider Naga case

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Publicly-listed SPC Power Corp. asked the Supreme Court to reconsider its ruling on the Naga Power Plant Complex in Cebu, saying it is “grossly disadvantageous to the government.”

SPC said in a statement the court’s decision “destabilizes the investment climate in the Philippines and retroactively changes the rules on competitive bidding.”

“With the Supreme Court’s ruling to reinstate the notice of award to Therma Power Visayas Inc., the government not only stands to lose P54 million but is deprived of a rebid of the Naga Power plant which would likely result in an even higher price for the government,” SPC said.

SPC is presently preparing a motion for reconsideration to be filed with the high tribunal. The move followed the previous ruling of the court which declared as null and void SPC’s right to top the bid of Therma Power Visayas by 5 percent.

SPC said the court’s decision  to reinstate the award of the Naga facility to Therma Power Visayas was contrary to its earlier position that “public bidding is the better means to secure the best bid for the government.”

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Therma Power Visayas offered a bid of P1.088 billion during the bidding of the Power Sector Assets and Liabilities Management Corp. in March 2014 wherein the right to top was known to the bidders.

SPC exercised its right to top and matched Therma Power’s bid and paid an additional P54 million or a total of P1.143 billion to PSALM.

PSALM eventually awarded and turned over the facility to SPC in September 2014.

Former Senator Sergio Osmeña III filed a case against SPC and Therma Power Visayas with the Supreme Court in July 2014, questioning the validity of the right to top, arguing that it was allegedly non-competitive.

“We urge PSALM, chaired by the Finance Department, to file its own motion for reconsideration as clearly, the decision is disadvantageous to the government at a time when government needs much-needed funds for employment and other basic services,” SPC said.

The complex consists of the 52.5-megawatt Cebu 1 and 56.8-MW Cebu 2 coal-fired thermal power plants, and the 43.8-MW Cebu diesel power plant 1 composed of six 7.3-MW bunker-C fed power units.

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