MANILA, Philippines – Publicly-listed firm Trans-Asia Oil and Energy Development Corporation has entered into a power administration and management deal for the output of the 116-megawatt Subic diesel power facility.
The company has disclosed to the Philippine Stock Exchange (PSE) that it has already secured the approval of its Executive Committee, as delegated by the Company’s Board, for the arrangement it made with One Subic Power Generation Corporation, mainly in selling the plant’s generated electricity.
It noted that the administration and management arrangement will cover the entire 116MW output of the facility. It has been explained that Trans-Asia will be selling or trading of the capacity of the plant; while operations will be under OSPGC, of which the facility is currently under lease.
Upon the expiration of the Build-Operate-Transfer (BOT) contract of the Subic power plant last year, the facility was turned over to the National Power Corporation (NPC), which in turn tossed it to the Subic Bay Metropolitan Authority (SBMA) based on the provisions of the agreement with respect to the facility’s operations and lease arrangements.
The Subic facility was built in 1994 with scandal-ridden Enron Corporation being the project sponsor.
With the lapse of the power facility’s BOT and the lease agreement between NPC and SBMA, the freeport opted to auction the lease arrangement for another five years which was subsequently cornered by OSPGC.
Trans-Asia, on the role it is taking on the administration and management of the power facility’s output, is considerably well-practiced in selling the capacity of diesel power plants.
It has been trading capacities under its charge to the Wholesale Electricity Spot Market (WESM); and it is also a licensed retail electricity supplier, hence, it can offer capacity to interested off-takers (buyers).
In the same disclosure to the local bourse, Trans-Asia indicated that it has gotten approval for it to exercise option “to purchase 131,000 square meters of property located at the Phoenix Petroterminals…at the option price of P31.26 million which shall be credited along with the initial down payment of P15.63 million to the total purchase price of P333.825 million.”
It must be noted that Phoenix Petroleum bought the oil handling facility in Calaca, Batangas from Trans-Asia more than a year ago. The purchase of the property has been Phoenix Petroleum’s gateway in expanding its retail oil network for the Luzon market. (Myrna M.Velasco, Manila Bulletin)
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