PSALM set auction of power plants, IPPA deals

by Riza T. Olchondra, 12 July 2015
from Philippine Daily Inquirer

POWER Sector Assets and Liabilities Management Corp. (PSALM) is ticking off more items on its privatization list between now and 2017.

Data sent by PSALM via e-mail showed that it was set to bid out contracts for the management of the bulk energy output from Leyte and output from the Mindanao coal-fired power plant.

The tender for the Independent Power Producer Administrator (IPPA) for the Bulk Energy of the Unified Leyte Geothermal Power Plants (ULGPP Bulk) was tentatively set for Aug. 12, 2015.

The investor groups interested in the ULGPP Bulk IPPA are SPC Power Corp.; Therma Central Visayas Inc.; Trans-Asia Oil and Energy Development Corp.; and Unified Leyte Geothermal Energy Inc.

The ULGPP is composed of the 125-MW Upper Mahiao, 232.5-MW Malitbog and 180-MW Mahanagdong power plants, and the 51-MW optimization plants. The ULGPP is covered by power purchase agreements between National Power Corp. (Napocor) and Energy Development Corp.

Also up for auction this year are Power Barge 104 and the decommissioned Sucat Thermal Power Plant.

Next year, 2016, the IPPA contract for the Caliraya-Botocan-Kalayaan hydro-electric power power (HEPP) is up for bidding.

In 2017, the Agus-Pulangi HEPP complex may be up for bidding, subject to consultation with Congress as stated in the Electric Power Industry Reform Act of. 2001 or Epira.

The remaining power plants that are not scheduled for auction are the Malaya Thermal Power Plant and the Casecnan Multi-Purpose Project.

According to PSALM, the privatization of Malaya, a must-run facility, is subject to instructions from the Department of Energy.

The privatization of the Casecnan facility, meanwhile, is under the Department of Finance’s review.

PSALM turned over last week three power barges with total capacity of 96 megawatts (MW) to publicly listed firm Trans-Asia Oil and Energy Development Corp. of the Phinma Group.

PSALM held the simple ceremonial turnover at its Makati City office on July 8, 2015, after completing negotiations for the sale of Power Barge (PB) Nos. 101, 102, and 103.

The turnover was highlighted by the signing of the Joint Certificate of Turnover of the power barges by PSALM Officer-in-Charge Lourdes S. Alzona and Trans-Asia SVP for Power Business Rizalino G. Santos.

“Finally, after much ado, we have come to this final stage in the sale of PBs 101-103,” Alzona said in a statement.

PSALM conducted the ceremonial turnover after it received on July 7, 2015. Trans-Asia’s full payment of the purchase price for the power barges in the amount of P420 million.

With an identical capacity of 32 MW, the PBs are barge-mounted bunker-fired power stations consisting of four identical Hitachi-Sulzer diesel generator units rated at eight (8) MW each. PBs 101-102 are currently stationed at Bo. Obrero in Iloilo City and were commissioned in 1981.

PB 103, which began operating in 1985, is currently docked at the Keppel Subic Shipyard in Zambales and is scheduled for repair.

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