PSALM board eyes negotiated sale ULGPP’s remaining bulk capacity

by Lenie Lectura – November 18, 2015

from Business Mirror

The Power Sector Assets and Liabilities Management (PSALM) board has decided to proceed with a negotiated sale of the Unified Leyte Geothermal Power Plant’s (ULGPP) remaining contracted capacity.

In a text message, PSALM President and CEO Lourdes S. Alzona said “privatization of ULGPP bulk is through negotiated sale before end of this year.”

The PSALM earlier declared the September auction as a failure after only one bidder—the Unified Leyte Geothermal Energy Inc. (ULGEI)—submitted a bid.

“We may have a negotiated bid but we are working on some compliance requirements,” Alzona had said.

On Wednesday the PSALM official said the board recently gave its go signal for a negotiated sale instead of conducting another auction.

ULGEI has already expressed its willingness to negotiate directly with the PSALM for the ULGPP Bulk Energy.

The PSALM earlier reported that there were four prospective bidders eyeing the ULGPP Bulk Energy, namely, SPC Power Corp., Therma Central Visayas Inc., Trans-Asia and ULGEI.

However, only ULGEI and Trans-Asia Oil and Energy Development Corp. complied with the documentary deliverables and qualified for the bidding. In the end, only ULGEI participated in the bidding activity.

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

The 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, the 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., 17 MW; and Waterfront Mactan Casino Hotel Inc., 3 MW.

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 the ULGPP was auctioned off in November 2013.