Lopez firm eyes 4 more Napocor generating assets

Lopez-owned First Generation Holdings Inc. (FirstGen) is planning to bid for four more generating assets of the National Power Corp. (Napocor), a ranking company official said over the weekend.

FirstGen senior vice president Ernesto Pantangco, in an interview, said they have already signified their interest to bid for 600-megawatt (MW) Masinloc power plant, 1.2 MW Loboc, and 75 MW Ambuklao/100 MW Binga.

FirstGen has won the bidding for the 1.6 megawatt (MW) Agusan hydroelectric power plant (HEP) located in Bukidnon last June 4, 2004.

The Power Sector Assets and Liabilities Management Corp. (PSALM) has sold the contract to First Gen that offered the highest bid amounting to $1.5 million. PSALM is the government entity tasked to dispose off the assets of the state-owned Napocor.

Pantangco said they are currently scouting for partners to form a consortium that would enable them to bid for Masinloc.

"This is a very big property we would look at forming a consortium," the FirstGen official said.

He said they consider the proposed deferred payment to be offered by PSALM for big assets like Masinloc is a "positive development". "Some buyers have concern about financing, this deferred payment would definitely attract bidders," he said.

FirstGen has also earlier indicated plan to bid for the 850-MW Sucat power plant which is being envisioned to be converted into a gas-fired facility.

At present, FirstGen has interests in diesel-fired Bauang Private Power Corp. and natural gas-fired Santa Rita and San Lorenzo power facilities.

"FirstGen would like to be competitive in a deregulated environment that is why we need to diversify," he said.

FirstGen’s subsidiary First Gas Holdings Corp. has announced a plan to conduct a study on the prospects of putting up a liquefied natural gas (LNG) terminal in Batangas.

According to FirstGen vice president Victor Santos, the company would wait for the the results of the study before they could look at LNG-related properties of Napocor.

"We think we need to look at the result of the feasibility study we are conducting before we can make any decision," Santos said.

PSALM is selling 620-MW Limay power plant together with Bataan thermal site by December this year. Limay is being considered as one of the possible sites for a LNG facility.