PSALM pushes auction of Naga coal-fired facility on Oct. 10

Manila Standard Today
by Alena Mae S. Flores


Power Sector Assets and Liabilities Management Corp. will push through with the bidding of the contracted capacity of the Naga Power Plant in Cebu on Oct. 10 despite questions raised by a lawmaker.


PSALM president Emmanuel Ledesma said those opposing the bidding of the contracted capacity of the Naga plant “may file a case for injunction before the Supreme Court” as provided by the Electric Power Industry Reform Act of 2001.


The Naga complex consists of the 106.8-megawatt coal thermal power plants 1 and 2 and the 39-MW diesel power plant in Naga, Cebu.


The plants are covered by a rehabilitate-operate-maintain-and-manage agreement with Kepco Salcon Philippines Corp. The contract will expire in March 2012.


“Our soonest privatization of Naga mitigates PSALM’s liabilities and any delay can have a reverse effect,” Ledesma said.


House Deputy Speaker Lorenzo Tañada III earlier called on PSALM to hold in abeyance the Naga independent power producer administrator bidding “until it has clarified issues regarding how the bidding rules have been designed.”


“The bidding of the Naga IPPA contract is being negotiated by a power plant located beside the Naga IPPA,” Tañada said.


PSALM earlier denied that Kepco-SPC had a right of first refusal over the Naga asset. Ledesma said Kepco-SPC had a “right to top” the offer of the other bidders under its land lease agreement.