The Power Sector Assets and Liabilities Management Corporation (PSALM) turned over the 146.5-megawatt (MW) Panay and 22-MW Bohol diesel power plants to its new owner, SPC Power Corporation (SPC), in simple ceremonies held today (25 March 2009) at the PSALM office in Makati City.

The turnover proceeded smoothly even as some sectors sought its deferment, citing some concerns.

“Today’s turnover of the Panay-Bohol power plants confirms the unwavering support and confidence of the investor community in the capability of the government, through PSALM, to institute the necessary reforms in the country’s power industry despite the current financial crisis,” said PSALM President and Chief Executive Officer Jose C. Ibazeta.

Offering USD5.86 million (USD5,857,553.34) for the Panay-Bohol package to win the public bidding conducted by PSALM on 12 November 2008, SPC has opted to pay the full purchase price to effectively complete the transaction for the two Visayas-based power plants.

          Energy Secretary and PSALM board Vice-Chairman Angelo T. Reyes and Finance Undersecretary Jeremias N. Paul, who represented Finance Secretary and PSALM Chairman Margarito B. Teves, turned over the ceremonial keys to the power plants to SPC President Dennis T. Villareal.

PSALM, in an earlier statement, said that the proceeds from the sale of the power plants would be used to pay a portion of National Power Corporation’s obligations to ease its huge debt burden.

Organized in 1994, SPC (formerly known as Salcon Power Corporation) won the contract for National Power’s 203.8-MW Naga Power Plant Complex under a Rehabilitation, Operation, Maintenance, and Management agreement.

Banking on the support of Salcon Philippines, Inc. and Salcon Limited of Singapore, SPC has continued to strengthen its involvement in power-related projects in the country.