Aboitiz power subsidiary sues partner in Ilocos Sur project

A subsidiary of the Cebu-based Aboitiz Power Corp. (APC) has sued its partner in Luzon Hydro Corp. (LHC), a joint venture that will build and run the 70 megawatt (mW) Bakun hydropower plant in Ilocos Sur. The APC-led Philippine Hydropower Corp. (PHC) has filed a complaint against Pacific Hydro Bakun Inc. (PHBI) and its parent company, Pacific Hydro Limited (PHL), for reportedly pursuing initiatives that "are beyond the original intent of shareholders," APC said in a disclosure at the Philippine Stock Exchange (PSE). Filed in a Cebu City regional trial court, the complaint alleged that PHC nominee directors were "threatened" and "intimidated" to endorse LHC's move to "participate in the bidding for the Independent Power Producer Administration (IPPA) for the combined contracted capacities of the Bakun plant, the 345 mW San Roque hydropower plant, and the 30 mW Benguet mini-hydro plants." The complaint also said that PHBI "spread allegations" of PHC nominee directors' wrongful conduct to third parties. PHC, through LHC, maintained that the joint venture remains a special purpose vehicle formed "specifically and solely to undertake the construction of the Bakun Plant under a Build-Operate-Transfer agreement with the National Power Corp.," it said in its disclosure. "For these reasons, PHC believes that PHBI and PHL cannot rightfully compel it to enter into the IPPA business with PHBI and PHL through LHC," APC said. PHC's refusal to enter the IPPA business didn't deprive its partner of participating in the bidding if it really wanted to, APC added. - GMANews.TV