Alstom willing to sell right to operate Limay power plant

Alstom has expressed willingness to sell its right to operate the 600-megawatt (MW) Limay power plant in Bataan.

Energy Secretary Vincent S. Perez told reporters that Alstom made this statement during a recent round table discussion with natural gas industry players. "They (Alstom) are willing to accommodate a buyer," Perez said.

Limay is one of the power plants that are set to be sold by the National Power Corp. (Napocor) as part of its privatization plan. The oil-fired power plant is being eyed for conversion into a gas-fired power facility.

Alstom has a contract with Napocor to operate and maintain the Limay plant.

Meanwhile, Gilles David, Alstom country manager, said they would likely not push through with its proposal to rehabilitate the 75-MW Ambuklao hydro-electric power plant. Alstom and PNOC-Energy Development Corp. have jointly proposed to rehabilitate the hydro facility.

David said they were informed by the Power Sector Assets and Liabilities Management (PSALM) that it has no intention of rehabilitating the power facility since it would be sold once the Napocor is privatized.

"We understand from PSALM that it will just sell Ambuklao along with other power plants of Napocor," David said.

The Alstom official said they respect the decision of PSALM. "I think they want the new owners of the plant to rehabilitate it," he said.

But he said they would be willing to proceed with the rehabilitation project once PSALM gives them go signal. "It’s up to PSALM. We are always ready to undertake the project," he added.

Napocor OIC-president Roland Quilala said they are not ready yet to transfer the right to rehabilitate the Ambuklao to other companies.

Quilala said Napocor and the Lopez-owned Meralco Industrial Engineering Services Corp. (Miescor) are in the midst of reviving the rehabilitation program for Ambuklao hydro plant. "They (Miescor) have indicated plans to go back after they have suspended work in the project in 2000," Quilala said.

The Ambuklao hydro plant was constructed in 1956. At present, Napocor has a 15-year rehabilitate-operate-lease (ROL) contract (1993-2008) with Miescor.