PSALM to bid out power from Naga plant

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WEDNESDAY, 15 JUNE 2011 20:05 PAUL ANTHONY A. ISLA / REPORTER

THE government-run Power Sector Assets and Liabilities Management Corp. (PSALM) is considering bidding out the National Power Corp.’s (Napocor) contracted capacity on the 149-megawatt (MW) Naga power complex to an independent power-producer administrator (Ippa) by late August, Emmanuel Ledesma Jr., the agency’s president and chief executive officer, told reporters.

An IPPA refers to a qualified independent entity that will administer and manage the energy output contracted by Napocor with independent power producers operating in Luzon and the Visayas.

In an interview, PSALM officials said they are anticipating around 10 bidders to vie to be the Ippa of the contracted capacity of the 149-MW Naga power complex in Naga, Cebu.

“Previously, there were six interested bidders a year ago. But aside from the six, I have received a number of letters of interest from maybe four to five additional bidders,” Ledesma said.

He added that most of these 10 interested bidders are local power companies.

“Some of them have not been as active in the power industry in the past,” he said.

After the privatization of the Naga power complex, Ledesma said they are looking at simultaneously bidding out the contracted capacity of the 165-MW Casecnan hydropower plant, as well as Power Barges 101 to 104 in the fourth quarter of the year.

Among others, SPC Power Corp. and San Miguel Energy Corp. have earlier expressed interest to bid for Napocor’s contracted capacities on the Naga plant complex.

The Naga complex is composed of the Cebu power plant complex 1, with an installed capacity of 55 MW, Cebu power plant complex 2, with a capacity of 55 MW; and the 39-MW Cebu diesel power plant.

To date, Psalm has privatized 68.7 percent of the total contracted capacities of the Luzon and Visayas grids to the Ippas.

PSALM generated $3.467 billion from the sale of the generating assets and $3.23 billion from the IPP contracts.

PSALM has yet to bid out the contracted capacities of the 728-MW Caliraya-Botokan-Kalayaan hydro plants, the 100-MW Western Mindanao Power Corp. plant, the 50-MW Southern Philippines Power Corp. plant, the 200-MW Mindanao coal plant, the 92.52-MW Mt. Apo 1 and 2 geothermal projects, and the 165-MW Casecnan hydropower plant.

PSALM has also successfully bid out 91.73 percent of the generating assets in the Luzon and Visayas grids. The only assets yet to be privatized include the 850-MW Sucat thermal plant and the 630-MW Malaya thermal plant.