Auctions for more government-held power assets moved

Business World Online
Posted on October 23, 2011 10:41:37 PM


AUCTIONS for deals to manage the contracted capacity of the 165-megawatt (MW) Casecnan hydroelectric plant and the 640-MW Unified Leyte geothermal power complex have been moved to early next year, while the sale of power barges 101-104 should be done by yearend, the Power Sector Assets and Liabilities Management Corp. (PSALM) said over the weekend.
“With the deferment of the Naga power plant capacity rebidding, PSALM will focus on the bidding for the Power Barges 101-104 which is targeted by the end of the year, and the privatization of the Unified Leyte and Casecnan IPPA (independent power producer administrator contracts), which are targeted for early next year,” PSALM President Emmanuel R. Ledesma, Jr. said via e-mail.
The agency, tasked by law to sell state power assets, had said it aimed to sell the Casecnan and Unified Leyte IPPA contracts, as well as the power barges this year.
PSALM had also wanted to sell the IPPA for the 140-MW Naga power plant complex in Cebu, but had to defer the auction amid questions on the bidding procedure.
The Casecnan hydropower plant is located in Nueva Ecija, while power barges 101-103 are moored in Iloilo and barge 104 is in Davao City. Each barge has a rated capacity of 32 MW.
The four-plant Unified Leyte complex is in Tongonan, Leyte.
The Energy department said there are still several issues that need to be resolved with the bidding for the assets.
“We’re studying the possibility of bidding out the power barges without the condition of moving the barges to Mindanao. There are also issues with Unified Leyte because it is a big asset but also because some lawmakers want to maybe defer it,” said Energy Undersecretary Josefina Patricia M. Asirit in a separate interview.
PSALM still has to schedule auctions for the IPPA contracts of the 50-MW Southern Philippines Power Corp. diesel power plant in Sarangani, the 92.52-MW Mt. Apo 1 and 2 geothermal power plants in North Cotabato, 100-MW Western Mindanao Power Corp. diesel power plant in Zamboanga City and 782-MW Caliraya-Botokan-Kalayaan hydropower plants in Laguna.
Privatization of the Agus-Pulangui hydroelectric power plant in Mindanao also has yet to be scheduled by the agency amid widespread opposition from even development planners and business groups on the island on fears doing so would jack up electricity prices on the island.
Mr. Ledesma said “since the privatization process has been firmly established, PSALM’s target is to complete the program at the soonest possible time.” Last year, privatization of the contracted capacity of the 650-MW Malaya thermal power was put on hold after its first bidding failed. There has been no decision yet on a new auction schedule. -- E. N. J. David