Masinloc payment extension lambasted

SENATE Minority Leader Aquilino Pimentel Jr. yesterday denounced the government’s decision to give the YNN Pacific Consortium 30 more days to comply with its obligation to settle the $227 million down payment for the sale of the 600 megawatt power plant in Masinloc, Zambales, after failing to do so by the June 30 deadline.

Pimentel said the extension of the payment deadline only lends credence to allegations that YNN Pacific, along with its now partner Ranhill Berhad of Malaysia, enjoys the protection of powerful officials in the Arroyo administration.

The Power Sector Assets and Liabilities Management (PSALM) Corp. said the 30-day grace period will enable the YNN-Ranhill to pursue its bid to acquire the coal-fired Masinloc plant for a total price of $561 million despite forfeiture of the company’s $14 million performance bond as penalty for defaulting on the payment for the third time.

“The action of PSALM bespeaks the hidden connection of YNN with administration officials. How else explain the lenient treatment PSALM has accorded YNN despite the failure of the latter to comply with its obligation to pay the down payment of $227 million for the acquisition of the Masinloc plant,” Pimentel said.

Camille P. Balagtas, Journal Group