SNAP keen on Casecnan, Caliraya bidding

Business Mirror
WEDNESDAY, 02 NOVEMBER 2011 18:59 PAUL ANTHONY A. ISLA / REPORTER


DESPITE the setbacks in the privatization of the remaining generating assets and contracted capacities of the National Power Corp. (Napocor), SN AboitizPower Corp. (SNAP) still expects to bag a few hydropower assets or contracted capacities that are scheduled for auctioning.
Emmanuel Rubio, SNAP President and Chief Executive, said they are still targeting to acquire the remaining hydroelectric power assets of Napocor. SNAP is the joint venture formed between SN Power of Norway and AboitizPower Corp.


“We’re looking at all potential assets for privatization. At the end of the day, it has to fit our portfolio. We’re looking at Caliraya-Botocan-Kalayaan (CBK) and Casecnan hydropower plants,” the SNAP official said in a recent interview.


He quickly added that they’re interest has not changed and that it’s just that  Power Sector Assets and Liabilities Management (PSALM) keeps on pushing back the privatization schedules.  


PSALM has yet to bid out the contracted capacities of the 131.8-megawatt (MW) Naga power plant, the 559-MW Unified Leyte geothermal plants, 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 Mount Apo 1 and 2 geothermal projects and 165-MW Casecnan hydropower facility.


PSALM was created under Republic Act 9136, also known as the Electric Power Industry Reform Act, in 2001 to manage the privatization of the state’s power assets and to handle the liabilities of Napocor.


Rubio said there is still around 1,000 MW of hydropower capacity that have yet to be privatized.


Although the company is focused on the Casecnan and CBK plants, Rubio did not discount the possibility of bidding for the Agus hydropower complex. “If there’s an opportunity, we will. But we’ll focus on CBK and Casecnan first and then Agus,” Rubio said.


AboitizPower earlier said they target to acquire assets and contracts of Napocor particularly hydropower plants in Mindanao as well as the geothermal power plants in Leyte.


AboitizPower President Erramon Aboitiz said they continue to look at participating in the bidding for the remaining generating assets and contracted capacities of Napocor.


Aboitiz said they are looking into participating in the bidding for some distribution assets. “We will also keep a watchful eye for acquisition opportunities in both the generation and distribution sectors, like our recent agreement with our partner Pacific Hydro for APC to assume full ownership and contract of Luzon Hydro’s 70-megawatt (MW) Bakun plant,” he said.


In late 2010, AboitizPower said it may spend about $2.8 billion to bring in an additional 1,400 MW of new capacities into the system.
“We still have room to expand. We still have, I think, more than 1,000 MW in Luzon, and then nationwide around 1,400 MW. And also, in Mindanao, our capacity there is very small at this point,” Aboitiz said.


He added that investment figures remain uncertain, saying that developing 1,400 MW of new capacity could entail investments of about $2.8 billion.


A megawatt of new generating capacity could amount to $1.5 million to $2 million worth of investments. AboitizPower is estimated to account for 15 percent of the Luzon market, 7 percent in the Visayas, 15 percent in Mindanao and 14 percent of the national grid.