Meralco unit wants Malaya power plant

Manila Standard Today
By Alena Mae S. Flores | Posted on August 06, 2012 | 12:03am


Meralco PowerGen Corp., the power generation unit of Manila Electric Co., has expressed interest to acquire the 650-megawatt Malaya thermal power plant in Pililla, Rizal, a company official said over the weekend.

Meralco PowerGen managing director Aaron Domingo said the Malaya power plant would fit into the operations of Meralco, the country’s biggest electricity retailer, although the government has not decided to auction the facility.

He said the site of the plant is also covered by the franchise area of Meralco.

Energy Secretary Jose Rene Almendras earlier suspended the privatization of the plant to ensure the government will get the best value for it.

He said selling the plant now would only bring out its property value. But the plant could be transformed into a “real power investment” when the natural gas pipeline is finished and the station is converted to utilize the clean fuel, making it an anchor load.

Korea Electric Power Corp. rehabilitated the Malaya plant in 1995 under a 15-year rehabilitate-operate-manage-maintain agreement. It consists of a 300-MW unit with a once-through type boiler and a 350-MW unit fitted with a conventional boiler

The Malaya plant is currently being run as a must-run unit, or when there is a need for additional power in the Luzon grid.

Power Sector Assets and Liabilities Management Corp. is operating the Malaya plant pending its privatization. PSALM is set to conduct the bidding for the contract to operate and maintain the Malaya plant on Aug. 17 for a budget of P555.828 million.

Domingo said Meralco PowerGen would not join the bidding for the Malaya power plant.

“The bidding for Malaya is an O & M and not ownership. MGen is not interested in pursuing the O & M,” Domingo said.

PSALM is conducting the bidding ahead of the expiration of the contract with SPC Light Co.-SPC Power Corp. consortium by Oct. 25.

Meralco PowerGen and its partners are putting up a 600-MW coal plant at the Subic Freeport. The company is also pursuing an aero-derivative combined cycle power plant in Calamba, Laguna, a liquefied natural gas project and coal projects with capacities ranging from 300 to 500 megawatts each.     source