GOVERNMENT-RUN National Power Corp. (Napocor) is estimated to incur higher losses up to P1.2 billion this year, according to the Department of Budget and Management (DBM). The budget department projects Napocor to increase its revenues to P10.6 billion this year which will, however, be overshadowed by an increase in expenses reaching P11.8 billion.
DBM report also noted that Napocor incurred P701.5 billion in net losses last year, although this is an improvement over its P2.87-billion loss recorded in 2009.
The budget agency added that Napocor had revenues amounting to P10.5 billion in 2010 but, at the same time, spent P11.2 billion. In 2009, Napocor had revenues amounting to P4.4 billion and only spent P7.3 billion.
Under Section 70 of the Electric Power Industry Reform Act, Napocor remains as a government-owned and -controlled corporation to perform the missionary electrification function.
The law also mandates the government company to be responsible for providing power generation and associated power delivery systems in areas that are not connected to the transmission system.
To date, the Power Sector Assets and Liabilities Management Corp. (Psalm)—the government agency tasked to divest of the generating assets of Napocor—has yet to bid out the 850-megawatt (MW) Sucat thermal plant and 630-MW Malaya thermal plant. The privatization and award of the 218-MW Angat hydroelectric power plants to Korea Water Resources Development Corp. remains on hold.
Apart from the three generation assets, Psalm also has yet to privatize Napocor’s contracted capacities in the 149-megawatt (MW) Naga power plant complex; the Unified Leyte geothermal plants which include the 125-MW Upper Mahiao plant, 232-MW Malitbog and 180-MW Mahanagdong plants; and the 51-MW optimization plants.
Energy Development Corp. operates the said steam plants, the 728-MW Caliraya-Botokan-Kalayaan hydro plants, 100-MW Western Mindanao Power Corp., 50-MW Southern Philippines Power Corp., 200-MW Mindanao Coal plant, 92.52-MW Mt Apo 1 and 2 geothermal project and 165-MW Casecnan hydropower plant.
At present, Psalm has privatized 68.7 percent of the total contracted capacities of the Luzon and Visayas grids to independent power producers (IPP) and has also successfully bid out 91.73 percent of the generating assets in the said grids.
Psalm generated $3.467 billion from the sale of the generating assets and $3.23 billion from the IPP contracts.
Psalm generated $3.467 billion from the sale of the generating assets and $3.23 billion from the IPP contracts.
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