PSALM defends its decisions regarding Unified Leyte geothermal contracts
Leyte geothermal plant, Philippines
Alexander Richter
19 Sep 2017
PSALM in the Philippines defends the termination of a contract with PHINMA Energy for 40 MW from the Unified Leyte geothermal power plants.
As reported from the Philippines, the Power Sector Assets and Liabilities Management Corp. yesterday defended its decision to terminate the contract with independent power producer administrators such as Phinma Energy Corp., the power arm of the Phinma Group.
“In every decision we make, we ensure that we strictly followed what is written in the IPPA AAs [administration agreements], putting in mind that PSALM’s paramount role is to uphold the interest and welfare of the government and to protect it from financial repercussions when issues arise such as the non-compliance with contractual obligations,” PSALM officer-in-charge Lourdes Alzona said in a statement.
Phinma Energy filed a complaint and sought a temporary restraining order against PSALM with the Makati City regional trial court last week for terminating their agreement and forfeiting on the company’s performance bond.
Sources said some companies aside from Phinma Energy also encountered difficulties in its IPPA agreement with PSALM for the Unified Leyte Geothermal power plants strips of energy.
The strips cover 240 MW, of which 200 MW were auctioned and 40 MW were retained by PSALM as security asset.
Aside from Phinma Energy, PSALM awarded 40 MW to FDC Utilities Inc., 40 MW to Unified Leyte Geothermal Energy Inc. and 40 MW to Aboitiz Energy Solutions Inc.
Around 3 MW was allotted to Waterfront Mactan Casino Hotel Inc., 20 MW to Good Friends Hydro Resources Corp. and 17 MW to Vivant Energy Corp.
For further details see link below.
Source: The Standard
