20 IDEAL INC.
vs PSALM  Despite press releases announcing K-Water as the winning bidder, PSALM failed to
G.R. No. 192088
Oct 9, 2012
By: MOLINA
Topic: National Economy and Patrimony
Petitioner: INITIATIVES FOR DIALOGUE AND EMPOWERMENT THROUGH ALTERNATIVE LEGAL
SERVICES, INC. (IDEALS, INC.), represented by its Executive Director, Mr. Edgardo Ligon, and
FREEDOM FROM DEBT COALITION (FDC), represented by its Vice President Rebecca L. Malay,
AKBAYAN CITIZEN'S ACTION PARTY, represented by its Chair Emeritus Loretta Anne P.
Rosales, ALLIANCE OF PROGRESSIVE LABOR, represented by its Chairperson, Daniel L. Edralin,
REP. WALDEN BELLO, in his capacity as duly-elected Member of the House of
Representatives,|||  RULING:
Respondent: POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT CORPORATION
(PSALM), represented by its Acting President and Chief Executive Officer Atty. Ma. Luz L.
Caminero, METROPOLITAN WATERWORKS AND SEWERAGE SYSTEM (MWSS), represented by
its Administrator Atty. Diosdado M. Allado, NATIONAL IRRIGATION ADMINISTRATION (NIA),
represented by its Administrator Carlos S. Salazar, KOREA WATER RESOURCES
CORPORATION, represented by its Chief Executive Officer, Kim Kuen-Ho and/or Attorneys-in-
fact, Atty. Anna Bianca L. Torres and Atty. Luther D. Ramos, FIRST GEN NORTHERN ENERGY
CORP., represented by its President, Mr. Federico R. Lopez, SAN MIGUEL CORP., represented
by its President, Mr. Ramon S. Ang, SNABOITIZ POWER-PANGASINAN, INC., represented by its
President, Mr. Antonio R. Moraza, TRANS-ASIA OIL AND ENERGY DEVELOPMENT
CORPORATION, represented by its President and CEO, Mr. Francisco L. Viray, and DMCI
POWER CORP., represented by its President, Mr. Nestor Dadivas||| 
Ponente: , J. Villarama
DOCTRINE: Sale of Government-Owned AHEPP to a Foreign Corporation Not Prohibited But
Only Filipino Citizens and Corporations 60% of whose capital is owned by Filipinos May be
Granted Water Rights.
FACTS:
 PSALM is a GOCC mandated by RA 9136 (Electric Power Industry Reform Act of
2001 or the EPIRA Law) to manage the orderly sale, disposition, and privatization of
the assets of the National Power Corp. (NPC) over a 25-year period. In the
discharge of its said duties, PSALM held a public bidding for the sale of AHEPP, a
246-MW hydroelectric power plant.
 After evaluating the submitted bids, PSALM awarded the sale to K-Water, a Korean
company.
 But even before K-Water was given the Notice of Award, IDEALS had been sending
letters to PSALM to request for copies of documents pertaining to the sale. The first
letter requested for copies of the Terms of Reference and proposed bids submitted
by the bidders. There was no response because at the time no bids have been
submitted yet. Besides, updates about the ongoing bidding were posted on the
PSALM website anyway.
 The second letter requested for information regarding the winning bidder, such as
company profile, contact person, office address, and Philippine registration.
sufficiently provide the petitioners with the information they were asking for,
almost as if PSALM officials were trying to hide something. 
ISSUE:
1. Whether or not petitioners have locus standi to file this petition before the Court.
2. Whether or not PSALM violated the Constitution in withholding documents of public
interest.
3. Whether or not a foreign company can own a hydroelectric power facility.
1. Yes. As citizens and taxpayers, petitioners do have legal standing to file this petition before
the Court.
2. Yes. In failing to provide the petitioners with the information they were asking for on their
second letter, PSALM violated Section 7, Article III of the 1987 Constitution, which provides
for the right of the people to information on matters of public concern. The Court ruled that
people's right to information is intertwined with the government's constitutional duty of full
public disclosure of all transactions involving public interest, pursuant to Section 28, Art. II of
the 1987 Constitution, which states a policy of full public disclosure. Both of these provisions
are also essential to hold public officials accountable for their actions. An informed citizenry,
said the Court, is essential to the existence and proper functioning of any democracy.
The Court made it clear that the public is entitled to information even on on-going
negotiations before a final contract, subject to the following exceptions: privileged
information, military and diplomatic secrets, and similar matters relating to national security
and public order.
In addition, the Court highlighted the difference between duty to disclose information and
duty to access information on matters of public concern. The duty to disclose information is
mandatory under the Constitution, but it only covers transactions involving public interest. In
the absence of an enabling law for Section 28, Art. II (e.g., Freedom of Information Act, which
has been languishing in the congress for more than 20 years), postings in public bulletin
boards and government websites will suffice.
The duty to access information, on the other hand, requires a demand or request for one to
gain access to documents and paper of a particular agency. It has a broader scope of
information, covering not only transactions of public interest, but also matters contained in
official communications and public documents of any government agency.
Because of this ruling, PSALM was compelled by the Court to provide all the documents the
petitioners were requesting for.
3. Yes, foreign ownership of a hydropower facility is not prohibited under existing laws. The
construction, rehabilitation, and development of hydropower plants are among the
infrastructure projects which even wholly-owned foreign corporations are allowed to
undertake under RA 7718 or the Amended Build-Operate-Transfer Law. 
DISPOSITIVE:
For the foregoing reasons, I vote to GRANT the Petition. The following
dispositions are in order:
(1) PSALM should FURNISH the petitioners with copies of official
documents, acts, and records relating to the bidding process
for AHEPP;

(2) The award by PSALM of the AHEPP to K-Water is NULL AND

VOID and UNCONSTITUTIONAL, as K-Water
is DISQUALIFIED from participating in the bidding to privatize
AHEPP. Accordingly, the APA and O & M Agreements entered
into between PSALM and K-Water should be declared NULL
AND VOID for being repugnant to Sec. 2, Art. XII of
the Constitution; PSALM should be PERMANENTLY
ENJOINED from further pursuing the sale of AHEPP in favor
of K-Water; and

(3) ONLY Filipino citizens and corporations at least sixty per centum

(60%) of whose capital is owned by Filipino citizens
are QUALIFIED to participate in the bidding for the sale of
AHEPP.