Wednesday, November 21, 2018

Aboitiz, AC Energy keen on bidding for PSALM’s remaining IPP contracts



By Lenie Lectura - November 21, 2018

ABOITIZ Power Corp. and AC Energy Inc. are keen on participating in the planned auction of the Power Sector Assets and Liabilities Management Corp.’s (PSALM) remaining independent power producer (IPP) contracts.
“Any opportunity to participate in that kind of transaction, we’re open,” Aboitiz CEO Erramon Aboitiz said.
Aboitiz was referring to PSALM’s contracted capacities with IPP plants, namely Caliraya-Botocan-Kalayaan hydroelectric power plants, Mindanao coal-fired thermal power plant, Casecnan multipurpose project, Unified Leyte geothermal power plant and the Mindanao I and II geothermal power plants.
AC Energy President Eric Francia said the power arm of conglomerate Ayala Corp. “will probably take a look at it.”
“That’s not core to our strategy, but we will look at it a minimum,” he said.
Early this month, PSALM announced it would tap consultants to determine the best privatization approach for the IPP plants.
The approved budget for the contract is P22.66 million, provided in the 2019 Corporate Operating Budget of PSALM.
“PSALM will evaluate the most beneficial and feasible privatization options and structures for its remaining  IPP contracts through the assistance of a third-party consultant,” PSALM said.
Specifically, the winning firm is tasked to study the technical, contractual, legal, commercial and plant-specific issues affecting the IPP contracts, review relevant agreements and applicable laws, conduct consultations with concerned agencies, and private entities, and conceptualize technical, financial and legal frameworks for the proposed privatization options and structures.

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