Key Deal Issues

(1) Built Operate Transfer Agreement with NPC (January 11, 1993 to July 25, 2010)
FPPC signed a BOT agreement with NPC to build and operate a bunker-fired power plant. 15 year Co-
operation period.
With PPP, the private sector finds a new and wider market in which to expand and invest its finances
in a stable, long-term cash flow. Infrastructure PPPs in the water, transportation, energy, and telecom
sectors are experiencing a boom
Allocation of management of risks to the players is the underlying driver of PPPS. That is, the public-
sector bears risks related to politics and, to some extent, economics. The private sector typically bears
commercial risks. The sharing of risk enables both public and private players to focus their strengths and
resources for the projects benefit.
Source:
PublicPrivate Partnerships A New Catalyst for Economic Growth (Sheldlac, et. Al, 2008)
https://www.strategyand.pwc.com/media/uploads/Public-Private-Partnerships

(2) Merger with First Private Power Corporation (December 13, 2010)
-First Gen, JG Summit, and Meralco became direct owners of BPPC but their shareholder value was
reduced.
including contingent liabilities
As before, many assets and liabilities will be measured at fair value, including intangible assets and
contingent liabilities. The revised standard continues the requirement for identification of intangible
assets, with very few intangibles being excluded from identification and valuation. The timely
identification of the nature and possible value of intangible assets remains important, as this affects post-
deal earnings. Indeed, where possible, the potential impact on earnings should be modelled pre-
acquisition. This may affect the scope and timing of an acquirers due-diligence exercise.
Source:
IFRS 3 (Revised): Impact on earnings
https://www.pwc.com/gx/en/ifrs-reporting/pdf/ifrs3r
(3) Financial Investments