Posted on June 20, 2012 09:06:22 PM
SALE to the private sector of two state-owned thermal plants has been put on hold until a natural gas pipeline will have been built, thus raising their value as assets that can be converted to run on this resource, the Energy chief told reporters yesterday.
"Sucat and Malaya are both on hold because if you sell those two now, they’re just going to be for real estate. But if you sell them with a guarantee that the pipeline will be there then that’s a real power investment," Energy Secretary Jose Rene D. Almendras said.
Both the 650-megawatt (MW) Malaya plant in Pililia, Rizal and the mothballed 600MW Sucat thermal facility in Parañaque City have been on the government’s privatization pipeline since 2010.
Auction for the management contract of the Malaya plant in 2010 failed when just one company -- First Gen Corp. -- submitted a bid, while the planned sale of the Sucat facility that same year was suspended and, together with other power privatization plans, subjected to review by the then-newly seated administration of President Benigno S. C. Aquino III.
This time, it will be the Malaya plant itself that will be sold. The facility was under a 15-year build-operate-transfer contract between the government and Korea Power Corp. which expired last January.
Both the 650-megawatt (MW) Malaya plant in Pililia, Rizal and the mothballed 600MW Sucat thermal facility in Parañaque City have been on the government’s privatization pipeline since 2010.
Auction for the management contract of the Malaya plant in 2010 failed when just one company -- First Gen Corp. -- submitted a bid, while the planned sale of the Sucat facility that same year was suspended and, together with other power privatization plans, subjected to review by the then-newly seated administration of President Benigno S. C. Aquino III.
This time, it will be the Malaya plant itself that will be sold. The facility was under a 15-year build-operate-transfer contract between the government and Korea Power Corp. which expired last January.
INTEREST STILL THERE
Mr. Almendras said the government expects the value of both plants to rise once the planned gas pipeline is completed, since they can be converted to run on this resource from bunker fuel.
"There are people who are interested to rehabilitate Sucat when the pipeline is there. To make sure that there are no issues in Sucat, we are hoping as soon as we finalize the plans for the pipeline, the value of Sucat improves because then people will see it as an investment into a natural gas facility," said Mr. Almendras.
The government is finalizing plans to build a natural gas pipeline from Batangas to Manila.
Government-led Philippine National Oil Co. is set to own and operate the 105-kilometer Batangas-Manila natural gas pipeline. The engineering and construction contract is targeted to be auctioned off this year, with actual construction to start in 2013.
A preliminary study by the Japan International Cooperation Agency showed a 105-kilometer pipeline will only $150 million instead of previous estimate of $1.2 billion.
The Energy department originally planned to build the Batangas-Manila pipeline with a liquefied natural gas terminal and a 600-MW power plant as an anchor infrastructure that will draw from the Malampaya natural gas project. -- ENJD source
"There are people who are interested to rehabilitate Sucat when the pipeline is there. To make sure that there are no issues in Sucat, we are hoping as soon as we finalize the plans for the pipeline, the value of Sucat improves because then people will see it as an investment into a natural gas facility," said Mr. Almendras.
The government is finalizing plans to build a natural gas pipeline from Batangas to Manila.
Government-led Philippine National Oil Co. is set to own and operate the 105-kilometer Batangas-Manila natural gas pipeline. The engineering and construction contract is targeted to be auctioned off this year, with actual construction to start in 2013.
A preliminary study by the Japan International Cooperation Agency showed a 105-kilometer pipeline will only $150 million instead of previous estimate of $1.2 billion.
The Energy department originally planned to build the Batangas-Manila pipeline with a liquefied natural gas terminal and a 600-MW power plant as an anchor infrastructure that will draw from the Malampaya natural gas project. -- ENJD source
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