PSALM lines up sale of Malaya, Leyte power plants

Manila Standard Today
by Alena Mae S. Flores


Power Sector Assets and Liabilities Management Corp. plans to sell the 650-megawatt Malaya thermal power plant, Power Barges 101 to 104 and a decommissioned Bataan facility this year, a company official said Tuesday.


PSALM president Emmanuel Ledesma said the agency would also push through with the privatization of the contracted capacity of the 640-MW Unified Leyte geothermal power plants and the 140-MW Casecnan multipurpose hydroelectric plant in Luzon within the year.


Ledesma said PSALM was reviewing the privatization mode for the Unified Leyte contracts.


The Malaya plant’s contracted capacity was scheduled for auction on June 16, 2010 but PSALM declared the bidding a failure after only First Gen Corp. of the Lopez Group submitted an offer.


Meanwhile, Power Barge 101, 102, 103 and 104 has a maximum capacity of 32 MW each. PB 101 and PB 102, commissioned in 1981, are moored at Baranggay Obrero, Iloilo City. PB 103 and 104, which were commissioned in 1985, are moored at Botongon, Estancia, Iloilo, and at the Holcim Compound, Ilang, Davao City, respectively.


PSALM earlier sold the Bataan thermal power plant to Rubenori Inc. for $2.859 milllion last year but the company failed to comply with the conditions of the sale.


Ledesma said PSALM would “expedite [the] privatization of remaining plants as well as the appointment of the independent power producer administrator” to help raise funds needed this year.


PSALM has maturing debt of $1.7 billion this year, including principal, interests and independent power producer lease obligations.


Ledesma said PSALM was set to incur a deficit of P85 billion this year arising from debt service and operational expenses.


“PSALM has an approved budget that indicates a deficit of up to P85 billion. This means that depending on the outcome of company operations, PSALM may have to source up to P85 billion,” Ledesma told reporters.