Case Digest (G.R. No. 192088) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In Initiatives for Dialogue and Empowerment Through Alternative Legal Services, Inc. (IDEALS, Inc.) et al. v. Power Sector Assets and Liabilities Management Corporation (PSALM), et al., decided October 9, 2012 (G.R. No. 192088, 696 Phil. 486, En Banc), various civil society groups and Rep. Walden Bello (petitioners) assailed PSALM’s privatization of the Angat Hydro-Electric Power Plant (AHEPP). Under Republic Act No. 9136 (the Electric Power Industry Reform Act of 2001 or EPIRA), PSALM was tasked to dispose of National Power Corporation (NPC) generation assets to retire NPC’s liabilities. In August 2005 PSALM began structuring the sale of the 246 MW AHEPP in Norzagaray, Bulacan, which forms part of the multi-purpose Angat dam complex serving power generation, irrigation, domestic water supply and flood control. On December 15, 2009 PSALM approved bidding rules; an Invitation to Bid appeared in major newspapers on January 11–13, 2010. The package covered four main units and three Case Digest (G.R. No. 192088) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Parties and Subject Matter
- Petitioners: IDEALS, Inc.; Freedom from Debt Coalition; AKBAYAN; Alliance of Progressive Labor; Rep. Walden Bello.
- Respondents: PSALM Corp.; MWSS; NIA; Korea Water Resources Corp. (K-Water); other NPC bidders.
- Subject: petition to enjoin PSALM’s sale of the 246-MW Angat Hydro-Electric Power Plant (AHEPP) to K-Water following public bidding.
- Privatization of AHEPP
- RA 9136 (EPIRA) created PSALM to privatize NPC generating assets within its 25-year term.
- PSALM published an Invitation to Bid (Jan. 11–13, 2010), selling AHEPP “as is, where is” and requiring winning bidder to enter an O&M Agreement for the dam and other non-power components.
- Six firms qualified; K-Water submitted the highest bid (US$440.88 M). PSALM’s Board issued Notice of Award to K-Water on May 5, 2010.
- Judicial Proceedings
- Petition for certiorari and prohibition filed May 19, 2010, with prayer for TRO/preliminary injunction.
- Supreme Court issued Status Quo Ante Order (SQAO) May 24, 2010. Respondents filed comments; K-Water filed a manifestation.
Issues:
- Procedural
- Is certiorari/prohibition the proper remedy?
- Has the petition become moot by issuance of the Notice of Award?
- Does it present a non-justiciable political question?
- Do petitioners have legal standing?
- Was the people’s right to information violated?
- Substantive
- Did PSALM exceed its authority in privatizing AHEPP?
- Must co-owners (MWSS/NIA) be offered AHEPP first?
- Does sale to a foreign corporation violate Constitution, Art. XII Sec. 2?
- Does the Water Code bar transfer of NPC’s water permit to K-Water?
- Did PSALM fail to prescribe EPIRA Sec. 47(e) safeguards for water usage?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)