Phinma Energy to sue PSALM
Phinma Energy Corp. will pursue a legal case against Power Sector Assets and Liabilities Management (PSALM) Corp. to stop the state-run agency from terminating its Independent Power Producer Administrator (IPPA) contract for 40 megawatts of the Unified Leyte Geothermal facility.
In a stock exchange filing, the company said it formally sought the renegotiation of the IPPA agreement and proposed several measures for relief since the power plant sustained extensive damage following the onslaught of Typhoon Yolanda in November 2013.
Phinma Energy was awarded 40-MW strips of energy a year after the incident.
“Representatives of PSALM and Phinma Energy met on several occasions. Phinma Energy wrote PSALM expressing the difficulties suffered by the administrators under the agreement,” the company said.
“Phinma Energy, through counsel, wrote a letter exercising its right to withdraw from the agreement. Discussions on the termination were initiated. However, PHINMA Energy received a notice from PSALM of the administrator default and PSALM has resolved to terminate the agreement and forfeit the performance bond,” it added.