Friday, September 24, 2010

Aboitiz to bid on gov’t power plants

Posted on 08:03 PM, September 24, 2010
Listed Aboitiz Power Corp. said it is still interested in bidding for the independent power producer administrator (IPPA) contracts of the remaining generation assets of the government.
Aboitiz Power president and chief executive Erramon I. Aboitiz told reporters that the company is awaiting the go signal of the Power Sector Assets and Liabilities Management Corp. (PSALM) for privatization.

"We’re still interested in Unified Leyte, we’re interested in the [hydroelectric power plants of the National Power Corp. (Napocor)] whether it be Caliraya, Botocan, Kalayaan or the one in Mindanao, Agus, if they sell it. We’re just waiting for PSALM to continue their privatization," said Mr. Aboitiz.

PSALM, the government body mandated by the government to privatize Napocor’s generating assets, indefinitely deferred the privatization of the 640 megawatt (MW) Unified Leyte geothermal power plants in Leyte and the 149 MW Naga power plant complex in Cebu to give more time for bidders to study new terms in the contract. PSALM is also in the process of rescheduling the rebidding of the 650 MW Malaya thermal power plant in Pililia, Rizal after the failure of the first bidding in June when only one bidder submitted its documents.

The agency said the PSALM board is still discussing the new bidding dates for the three generating assets.

Privatizing at least 70% of the Napocor’s IPPA contracts is one of the preconditions to usher in open access and retail competition in the power industry under Republic Act no. 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001. PSALM achieved 68% of this target after the sale of hydropower IPPAs last December.

PSALM breached the 70% threshold for privatization of the state’s generating assets, another precondition for open access, in July 2009 after the successful sale of the 600-MW Calaca coal-fired plant to DMCI Holdings, Inc.

The successful bidding out of any of these three assets would push the threshold for open access. Open access allows distribution utilities choice in power generation units to source its energy.

PSALM is the government body mandated by EPIRA to manage the privatization of the state’s power assets as well as to handle the liabilities of Napocor.

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