FirstGen’s $1.5-M offer wins bid for Agusan hydropower plant proj

The Lopez-owned First Generation Holdings Corp. (FirstGen) won the bidding for the 1.6-megawatt (MW) Agusan hydroelectric power plant (HEP) in Bukidnon.

The Power Sector Assets and Liabilities Management Corp. (PSALM) said it has sold the contract to FirstGen which offered the highest bid of $1.5 million. PSALM is the government entity tasked to dispose off the assets of the state-owned National Power Corp. (Napocor).

The Privatization, Bids and Award Committee (PBAC) chaired by Energy Secretary Vincent S. Perez reported that FirstGen bested two other bidders – Hydro Electric Development Corp. and Sta. Clara International Corp.

Perez said the results only show a very strong appetite among power investors on the government’s power generating facilities.

"It is also a clear sign of a very positive outlook in the economic condition of the country," he said.

He said this is the second time that the sale of the generating assets of Napocor went smoothly. "The investors’ confidence in the credibility and transparency of the bidding process also encourages us to double our efforts in keeping the privatization program on the right track," he added.

On March 25, PSALM bidded out the Talomo HEP in Davao. The Aboitiz-owned Hydro Electric Development Corp. won the bid, offering $1.37 million. PSALM is currently undertaking steps to transfer ownership of the plant.

Budget Secretary and PBAC member Emilia T. Boncodin expressed satisfaction with the outcome. "The PSALM board and its technical teams took pains to study the various aspects of this bidding. Obviously the bidders also did their homework as they came up with very competitive bids," she said.

Finance Secretary and PSALM board chairperson Juanita D. Amatong also expressed confidence that this successful bid will help ease the obligations of the Napocor.

"We are looking at more positive developments for Napocor and the country," she said, pointing out that two more power plants are scheduled for bidding later this month.

PSALM president Raphael P.M. Lotilla said the Cawayan and Barit HEPs are lined up for bidding in the next few weeks.

"This early we have received serious interests from three bidders for each of the plant," he said.

Originally planned to be sold as a package, the plants will now be sold separately due to greater potential investor interest. The 1.8 MW Barit HEP is located in Buhi, Camarines Sur while the 0.4 MW Cawayan HEP is located in Sorsogon City.