SAN MIGUEL CORP. (SMC) insists its participation in public biddings is advantageous to the government.
“It’s more advantageous to allow San Miguel to join every government public bidding because when San Miguel joins the bid, the government usually gets the best deal,” SMC President Ramon Ang said.
He said this after revealing the Power Sector Assets and Liabilities Management Corp. (PSALM), which manages the assets and liabilities of National Power Corp. (NPC) as mandated by the Electric Power Industry Reform Act of 2001, allegedly refused SMC’s power unit to bid for the 650-megawatt (MW) Malaya Thermal Power Plant Complex (MTPPC).
“Iyong Malaya, hindi ko alam na ibi-bidding. One day after, nagsulat ako na sasali ako sa bidding. Ang bidding March pa, ayaw ako pasalihin. Anong reason? Bakit ako hinaharang? Para mabili ng mga kaibigan nila nang mura? Hindi ba mali iyon?” Ang said.
The auction is set on March 8 this year. Four firms have expressed interest to participate in the bidding. These are APT Global, Inc., Phinma Energy Corp., Riverbend Consolidated Mining Corp., and AC Energy Holdings Inc.
The four companies submitted letters of interest last December 20. The bidders can conduct their due diligence up to March 6, 2017.
It was not clear if SMC’s power unit did not make it to the December 20 deadline as PSALM did not reply when sought for comment. Ang also did not say why the company was not allowed to bid.
“It’s most advantageous to the government to allow more bidders. Lahat ng projects, sinasalihan ko ang bidding para hindi maloko ang gobyerno. Gusto ko lang sumali kasi kapag sumali ako mataas agad bid. Tingnan mo ang Calax, panalo na kami sa bidding,” he said when asked why the company was interested in the power asset.
San Miguel Global Power, through its unit South Premier Power Corp. (SPPC), earlier lodged a complaint against PSALM.
Ang said he would pursue the case against the state firm.
“Iurong niya pag confiscate ng Ilijan, then iurong ko lahat. Kung hindi niya iurong, then hindi ko rin iuurong ang kaso,” Ang said.
On September 8, 2015, SPPC was constrained to file a complaint before the Regional Trial Court of Mandaluyong against PSALM due to a “willful breach of contract” arising from what SPPC believes is “a flawed interpretation of certain provisions related to its generation payments under the Ilijan IPPA [Independent Power Producer Administrator] agreement. PSALM’s unfounded interpretation has resulted in alleged shortfall in generation payments by SPPC.”
The case also sought to stop PSALM from “illegally terminating SPPC’s Ilijan IPPA and treating the latter as an administrator in default.” On the same date, the Court issued a 72-hour TRO (temporary restraining order) against PSALM.
On September 15, 2016, the court issued an order granting a preliminary injunction enjoining PSALM from proceeding with the termination of the Ilijan IPPA agreement with SPPC while the main case is pending.