PSALM divides Napocor gencos into 4 groups, eyes $5B in sales proceeds

The Power Sector Assets and Liabilities Management Corp. (PSALM) will adopt a so-called "free-flowing" grouping for the sale of the National Power Corp.’s generation assets (gencos). The sale is estimated to generate some $5 billion in additional revenues for the government.

"The genco groupings would be flexible. We won’t decide on this until the investors decide what they want. We would also consider what the IRR (implementing rules and regulations) of Republic Act 9136 or Electric Power Industry Reform Act will say," PSALM president Edgardo Del Fonso said.

Del Fonso said they want the investors to have a free hand in choosing what kind of genco they want to buy. "We are not firm on the genco groupings. We have to wait for the IRR to be completed," he said.

PSALM has created four preliminary groupings for the power firm’s generation assets.

The first is Luzon Calaca group which includes the Calaca coal plant (600 megawatts) in Batangas; Pinamucan (105 MW); and Malaya Thermal in Rizal (650 MW). This group has an aggregate capacity of 1.335 MW.

Next is the Luzon Masinloc group which is composed of Masinloc coal in Zambalez (600 MW).

The third group is the Luzon Angat group which includes Angat hydro (245 MW); Pantabangan (100 MW); Masiway (12 MW); Binga (100 MW); and Ambuklao (75 MW). Total capacity of this group is 532 MW.

The PSALM is also planning to sell Napacor’s geothermal plants individually. They are Bacman (150 MW); Palinpinon (193 MW); Tiwi-Makban (685 MW); and Tongonan (113 MW).

Likewise, PSALM is studying the possibility of selling the power firm’s 13 small hydro, diesel and bunker fuel oil-based plants.