Privatization spooked by corruption fears
Posted by akosistella on April 29, 2010
Would-be buyers are shying away from the privatization of big-ticket items for fear that any deal in the closing months of the Arroyo administration would be tagged as a “midnight” transaction, a senior privatization official said yesterday.
The official, who asked he not be named, said no buyer would enter into a negotiated sale for the Food Terminal Inc., for example, at the risk of the transaction being rescinded by the incoming administration.
“It all boils down to the election. Everyone thinks that if we put a big item up for sale, we’re plotting something very sinister,” the official said.
Korean firm wins Angat power plant
The Power Sector Assets and Liabilities Management Corp. (PSALM) has named the Korea Water Resources Development Corp. (K-Water), a newcomer in local power industry, as the highest bidder for the 218-megawatt Angat hydroelectric power plant.
In a text message, PSALM vice president Conrad Tolentino said K-Water won the bid with an offer of $440.88 million.
DMCI Power Corp. had an offer of $188.89 million; First Gen Northern Energy Corp., $365 million; San Miguel Corp., $312.5 million; SN-Aboitiz Power Pangasinan, $256 million, and; Trans-Asia Oil and Energy Development Corp., $237 million.