Published May 19, 2018, 10:00 PM By
Myrna M. Velasco
The board of Power Sector Assets and
Liabilities Management Corporation (PSALM) in its last meeting has decided to
temporarily suspend “privatization plans” for the 650-megawatt Malaya thermal
power plant.
Essentially, according to the
members of the Board, they “terminated bidding process” for the plant – and had
opted to instead tap a third party advisor that would be able to recommend
“appropriate divestment mode” for the facility.
Nevertheless, Department of Energy
(DOE) Undersecretary Felix William B. Fuentebella indicated that they will seek
reconsideration of the PSALM Board decision, with him noting that “there’s a
DOE letter that was sent just after the Board meeting stating that there are no
problems anymore when it comes to the plant’s privatization.”
He said they intend to sit down with
Finance Undersecretary Bayani H. Agabin “so the concerns on Malaya’s
privatization could be resolved.”
Manifestly, the energy department is
batting for continuous divestment for the asset, in which it also recommended
to be converted into a gas-fired power facility.
It was similarly gathered from the
board that formal letters of the “bidding termination” will be sent to Malaya
plant’s prospective bidders – once a final decision is taken.
But as of press time, it was tipped
off by energy official-sources that PSALM Board has already agreed to calendar
Malaya’s privatization anew as part of its agenda in the next meeting.
In a related development, the
auction for Malaya’s one-year operation and maintenance (O&M) contract has
been moved to May 30 this year, so PSALM “could respond more comprehensively”
to the queries of pre-qualified bidders.
The company previously stated that
it is eyeing eight firms joining the O&M bidding exercise – which was first
calendared May 15 this year.
The O&M deal is an interim
arrangement that PSALM has been resorting to on continued operations of the
Malaya plant – it being a transition phase also to the power facility’s
eventual divestment.
The Malaya plant is currently being
depended upon as must-run unit (MRU) in the system – in that sense, it is the
generating facility being called upon for dispatch when supply runs too tight
in the Luzon grid.
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