By Myrna M. Velasco
Published: June 27, 2013
The privatization of the supply contract of the 150-megawatt Casecnan hydropower facility will be lumped with the 22-MW Benguet mini-hydro power asset, an office order issued by PSALM president Emmanuel R. Ledesma Jr. has indicated.
Office Order No. 2013-122 was released June 20 this year, specifying the preparation parameters for the Casecnan-Benguet mini-hydro assets’ privatization via the appointment of an Independent Power Producer Administrator or IPPA.
Separately, Office Order No. 2013-121 was issued on the same date, tackling also preparatory works for the privatization of the supply contract for the Unified Leyte geothermal power facility.
The orders prescribed that for both the Casecnan and Unified Leyte packages, the TWG will be chaired by Arnold C. Francisco of the company’s IPP/IPPA unit.
In the TWGs formed, Francisco will be assisted by vice chairperson Patricia Grace P. Libo-on for the Casecnan-Benguet supply contract offer; while Beatriz Irina Denise C. Alazas will be the vice chairperson in the Unified Leyte privatization.
Each working group will also be aided by technical members; as well as representatives from corporate planning, liability management division (LMD) and the Office of the General Counsel (OGC) of PSALM.
Separate secretariats with a chairperson and two members were also formed to “provide the administrative and logistical requirements and serve as the main support unit of TWG.”
The TWGs, Ledesma stated, were “created to prepare the bidding and transaction documents, finalize the commercial and legal structures, establish the privatization timeline; and assist in the resolution of all technical, financial, contractual and other outstanding issues” of the assets that will be tendered to private sector takers.
The targeted bidding for the supply contracts of the specified assets will be around fourth quarter this year, granting that all outstanding issues will be resolved. This will include the post-turnover ownership of the Casecnan plant which may likely divert from the conventional IPPA offers made for the other assets.
The ‘complicating factor’ in the privatization of the Casecnan hydropower asset is the stake held by the National Irrigation Administration (NIA) – which at the lapse of the facility’s supply contract, the asset transfer may be done with the irrigation agency and not to the National Power Corporation or the IPPA.
The added duties and responsibilities of the TWG, according to Ledesma, will include securing the consent of the current IPP operators of the plants.
The other functions would delve with publishing the invitation to bid (ITB); assisting bidders in the conduct of due diligence; as well as “assist the privatization bids and awards committee (PBAC) in the conduct of pre-bid and bidding activities.”
The working group will also be tasked to “compile and present data to allow the PSALM Board to establish the reserve price.”
Further, the TWG members are directed to “conduct fora and/or consultations with different stakeholders and prospective bidders.”
Similarly, Ledesma has instructed the company’s budget planning and management department, electricity trading unit as well as other departments “to extend assistance to the TWG as necessary.” source
Office Order No. 2013-122 was released June 20 this year, specifying the preparation parameters for the Casecnan-Benguet mini-hydro assets’ privatization via the appointment of an Independent Power Producer Administrator or IPPA.
Separately, Office Order No. 2013-121 was issued on the same date, tackling also preparatory works for the privatization of the supply contract for the Unified Leyte geothermal power facility.
The orders prescribed that for both the Casecnan and Unified Leyte packages, the TWG will be chaired by Arnold C. Francisco of the company’s IPP/IPPA unit.
In the TWGs formed, Francisco will be assisted by vice chairperson Patricia Grace P. Libo-on for the Casecnan-Benguet supply contract offer; while Beatriz Irina Denise C. Alazas will be the vice chairperson in the Unified Leyte privatization.
Each working group will also be aided by technical members; as well as representatives from corporate planning, liability management division (LMD) and the Office of the General Counsel (OGC) of PSALM.
Separate secretariats with a chairperson and two members were also formed to “provide the administrative and logistical requirements and serve as the main support unit of TWG.”
The TWGs, Ledesma stated, were “created to prepare the bidding and transaction documents, finalize the commercial and legal structures, establish the privatization timeline; and assist in the resolution of all technical, financial, contractual and other outstanding issues” of the assets that will be tendered to private sector takers.
The targeted bidding for the supply contracts of the specified assets will be around fourth quarter this year, granting that all outstanding issues will be resolved. This will include the post-turnover ownership of the Casecnan plant which may likely divert from the conventional IPPA offers made for the other assets.
The ‘complicating factor’ in the privatization of the Casecnan hydropower asset is the stake held by the National Irrigation Administration (NIA) – which at the lapse of the facility’s supply contract, the asset transfer may be done with the irrigation agency and not to the National Power Corporation or the IPPA.
The added duties and responsibilities of the TWG, according to Ledesma, will include securing the consent of the current IPP operators of the plants.
The other functions would delve with publishing the invitation to bid (ITB); assisting bidders in the conduct of due diligence; as well as “assist the privatization bids and awards committee (PBAC) in the conduct of pre-bid and bidding activities.”
The working group will also be tasked to “compile and present data to allow the PSALM Board to establish the reserve price.”
Further, the TWG members are directed to “conduct fora and/or consultations with different stakeholders and prospective bidders.”
Similarly, Ledesma has instructed the company’s budget planning and management department, electricity trading unit as well as other departments “to extend assistance to the TWG as necessary.” source
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