ICS Renewables was formally declared the winning bidder for the 0.8-megawatt (MW) Amlan Hydroelectric Power Plant by the Power Sector Assets and Liabilities Management Corporation (PSALM) after the company received from PSALM the Notice of Award and Certificate of Effectivity (COE) for the Amlan asset last Thursday (08 January 2009).

The issuance and receipt of the COE last Thursday signal the effectivity of the Asset Purchase Agreement (APA) and the commencement of the 270-day deadline for PSALM and ICS Renewables to complete their respective closing deliverables and the conditions precedent for the Amlan sale. The COE obligates PSALM and ICS Renewables to execute the provisions stipulated in the APA.

One of the provisions requires ICS Renewables to put up a performance bond of USD23,000, which is equivalent to 10% of its purchase price for the Amlan asset, within 10 days from the agreement’s effective date. ICS Renewables offered USD230,000 for the Visayas-based hydropower facility in a bidding conducted by PSALM last 10 December 2008. The amount exceeded the reserve price set by the PSALM Board for the generating asset.

ICS Renewables is a newly-incorporated, Filipino-owned company engaged in the manufacture of alternative fuels. The firm is also involved in acquiring, developing, owning, leasing, subleasing, operating and managing real and personal property of every kind and description, including but not limited to, properties using alternative fuels and other environment-friendly device or equipment.

Located in Sitio Pasalan, Bgy. Silab, Amlan, Negros Oriental, the Amlan plant is the first power facility to be constructed in the province. It is designed to operate as a base-load plant, supplying power to the town of Amlan and nearby villages.