Psalm: Disposition of remaining NPC assets done in 3 years

by Lenie LecturaJuly 15, 2016

from Business Mirror

The Power Sector Assets and Liabilities Management Corp.  (PSALM) said it would “do its best” to dispose of the remaining assets of the National Power Corp. (NPC) in three years.

PSALM Officer in Charge Lourdes S. Alzona said the agency is aware of the finance department’s intention to privatize the remaining power assets.

“If that’s the direction, then we will do our best,” Alzona said in a text message.

The secretary of the Department of Finance (DOF) acts as the chairman of the PSALM Board. While PSALM has its own board of directors and set of corporate officers, it reports to the Department of Finance.

Finance Secretary Carlos G. Dominguez III recently said there is a need “to speed up their disposal of assets.”

Alzona said there are five power assets that have yet to be privatized. “The remaining plants include Agus, so that may have to be in the program. Malaya and IPP [independent power producer] plants, like CBK, Casecnan and Mindanao coal, as well.”

The PSALM official was referring to the 850-megawatt (MW) Sucat Thermal Power Plant, the 200-MW Mindanao Coal-Fired Thermal Power, the 982-MW Agus-Pulangi hydropower complex, the 40-MW “security capacity” of the Unified Leyte Geothermal Power Plant (ULGPP), and the bulk capacity of the ULGPP itself.

Alzona said PSALM is in constant consultation with the DOF and the Department of Energy, (DOE) on policy directions. The ULGPP is in the Visayas. The PSALM Board still needs to determine if the 40-MW security capacity would be bundled to the remaining 160 MW of ULGPP’s bulk capacity that is yet to be privatized.

PSALM is also looking at a negotiated sale of the bulk capacity of ULGPP after only one bidder—the Unified Leyte Geothermal Energy Inc. (ULGEI), a subsidiary of Lopez-led Energy Development Corp.—participated in the bidding.

On Mindanao coal, PSALM also awaits the go ahead of the DOE. The power-plant supplies about a fifth of Mindanao’s power requirements.

The 982-MW Agus-Pulangi hydropower complex, meanwhile, provides more than half of Mindano’s current electricity capacity.