Friday, February 12, 2016

PSALM plans rebidding for Mindanao plant output

By Danessa Rivera (The Philippine Star) | Updated February 12, 2016 - 12:00am
http://www.philstar.com/business/2016/02/12/1552044/psalm-plans-rebidding-mindanao-plant-output

MANILA, Philippines – State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is planning to re-auction the 210-megawatt (MW) Mindanao coal-fired power plant in Misamis Oriental in the second half of this year.

“PSALM will seek the approval of its board for the privatization of Mindanao Coal in the second semester of 2016,” PSALM OIC Lourdes S. Alzona said.

The PSALM board, chaired by Finance Secretary Cesar V. Purisima, is composed of the secretaries of DOE, Department of Budget and Management, Department of Justice and Department of Trade and Industry.

Alzona noted the Department of Energy (DOE) has endorsed the plan since the power situation in Mindanao is expected to ease in the latter part of the year.

“[This is] considering DOE’s non-objection to said schedule based on its forecast that power supply situation in Mindanao will normalize by then,” she said.

The bidding for the privatization of the output of the Mindanao coal-fired power plant was deferred until after summer 2016, when power supply situation stabilizes in the region.

Originally, it was set for bidding in September 2015, but was pushed back to November 2015 and awarding of the contract this month.

Earlier, six groups expressed interest in the Mindanao Coal IPPA, one of them being a partnership between Aboitiz Power Corp. and Negros-based grains trader and miller La Filipina Uy Gongco Corp.

DOE Secretary Zenaida Monsada had said the auction could only happen summer next year, when the supply situation improves.

The plant, located in Misamis Oriental, is operated by Steag State Power Inc. under a 25-year build-operate-transfer (BOT)-power purchase agreement scheme until 2031.

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