AboitizPower wants asset sale stopped

Luzon Hydro Corp., a wholly-owned subsidiary of AboitizPower Corp., owns and operates a hydropower plant in Alilem, Ilocos Sur.

AboitizPower Corp.’s wholly-owned subsidiary Luzon Hydro Corp. (LHC) has filed a second petition to stop the Municipality of Alilem from auctioning its real estate properties in Alilem, Ilocos Sur.

LHC is seeking another temporary restraining order and preliminary injunction versus the local government plan to auction its assets. This follows the first petition filed on 25 November, covering the first batch of LHC properties, the Temporary Restraining Order for which has been granted by the Ilocos regional trial court early December.

“LHC received a notice of real property tax (RPT) delinquency from the Office of the Municipal Treasurer of Alilem, Ilocos Sur seeking to collect a total of P82,249,235 in unpaid RPT and accrued penalties for seven properties, covering the period from 2004 to September 2019,” AboitizPower told the stock exchange on Monday.

It added the municipal treasurer proceeded to issue a notice of publication and auction sale covering five of the seven LHC real estate properties composed of machinery.

On top of preventing the auction sale of assets, LHC is contesting the assessed amount declared as RPT delinquency by the local government, AboitizPower said.

Having received Alilem’s notice of RPT delinquency, LHC has a standing offer to the Ilocos Sur provincial government baring its willingness to pay the PRT computed in accordance with Executive Order (EO) 60, series of 2018. It said the tender of payment was rejected.

EO 60 enables the reduction and condonation of RPT and interest or penalties assessed on power generation facilities of independent power producers under build-operate-transfer contracts.

“In addition, the Power Sector Assets and Liabilities Management Corp. (PSALM) issued a letter to the Municipality of Alilem urging it to reconsider the auction of the levied assets, in consideration of the ownership rights and interest of the government (through PSALM) over the levied assets,” AboitizPower said.

Moreover, it reiterated that President Duterte on 13 August 2019 issued EO 88, series of 2019, basically reiterating the terms under EO 60 and confirming the reduction of the RPT obligations of IPP for all years up to 2018.

LHC owns, operates and manages a 70-megawatt Bakun AC run-of-river hydropower plant in Amilongan, Alilem, Ilocos Sur. It was constructed and operated under the government’s Build-Operate-Transfer scheme.