PSALM continue to work on negotiated sale of ULGPP

By Lenie Lectura - October 20, 2015

THE Power Sector Assets and Liabilities Management Corp. (PSALM) is working on “some compliance requirements” in preparation for a negotiated sale of the Unified Leyte Geothermal Power Plant’s (ULGPP) remaining contracted capacity.

This, after last month’s auction was declared a failure after only one bidder—Unified Leyte Geothermal Energy Inc. (ULGEI)—submitted a bid. “We may have a negotiated bid, but we are working on some compliance requirements,” PSALM President and CEO Lourdes S. Alzona said in a text message, when sought for an update on the matter.

She did not elaborate, but said this was already taken up by the board.

ULGEI has expressed its willingness to negotiate directly with PSALM for the ULGPP bulk energy.

While two bidders—ULGEI and Trans-Asia Oil and Energy Development Corp.—had complied with the documentary deliverables and qualified for the bidding, only ULGEI participated in the bidding activity.

PSALM earlier reported there are four prospective bidders eyeing the ULGPP bulk energy, namely, SPC Power Corp., Therma Central Visayas Inc., Trans-Asia and ULGEI.

ULGEI is a subsidiary of the Lopez-led Energy Development Corp.

ULGPP is composed of the 125-megawatt (MW) Upper Mahiao plant; the 232.5-MW Matlibog plant; the 180-MW Mahanagdong plant; and the 51-MW optimization plants.
ULGEI earlier won the auction of ULGPP’s “bulk” contracted capacity, but it withdrew its bid because the assets were damaged by Supertyphoon Yolanda.

Aside from the bulk capacity, PSALM also auctioned off the asset’s “strips” of capacity. The following won: ULGEI, FEDC Utilities Inc., Trans-Asia and Aboitiz Energy Solutions Inc. each bagged the rights for 40 MW, while Good Friends Hydro Resources Corp. was awarded with 20 MW; Vivant Energy Corp., 17MW; and Waterfront Mactan Casino Hotel Inc., 3MW.

Under the contract, they will manage the contracted output of the power plant. The output could be traded on the Wholesale Electricity Spot Market.

A total of 200 MW of “strips” and bulk capacity from ULGPP were auctioned off in November 2013.