Filipino power producer First Gen Corporation moved closer to acquiring the 112MW Pantabangan-Masiway hydroelectric power plant complex after it gained approval from creditors.
According to reports on Factiva, major creditors of state-owned National Power Corporation have cleared the sale and transfer of the scheme, which is located in the Philippines Nueva Ecija district.
Power Sector Assets and Liabilities Management Corporation (PSALM) sold Pantabangan-Masiway to First Gen on 8 September. One of First Gen’s units submitted a US$2.58M guarantee bond, equal to 2% of the company’s US$129M winning bid, in order to ensure First Gen will perform all its buyer obligations. PSALM will receive 40% of the total payment upfront.
First Gen must submit a further US$61.6M once all conditions to complete the sale are met. The balance will be paid over a 14-month period.
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