The company has settled the sum of PHP1.14bn to the Power Sector Assets and Liabilities Management’s (Psalm) account with the Development Bank of the Philippines.

Citing a letter submitted to the state-run company SPC said, "With the payment, we expect PSALM to sign and execute, as the counter party, the Asset Purchase Agreement and the Land Lease Agreement attached in the bidding package which SPC had already prescribed."

The payment marks 5% higher when compared to PHP1.088bn offer made by Therma Power Visayas, a unit of Aboitiz Power.
The bid includes sale and purchase of the Naga power assets as well as the lease of the land.

PSALM, under the Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001, is authorized to manage the privatization and maintenance of power generation assets, liabilities, contracted capacities, and disposable assets of National Power.

The power complex comprises coal-fired Cebu thermal power plants 1 and 2, with installed capacities of 52.5MW and 56.8MW, respectively as well as 43.8MW Cebu diesel power plant, consisting of six 7.3MW diesel-fed power units.