Government may sell only 4 more power plants this year

The government is likely to sell only four more power plants in the remaining months of the year, the country’s top energy official said.

In a report presented during the recent mid-year economic briefing, Energy Secretary Raphael P.M. Lotilla said they expect the second round of bidding for the 225-megawatt (MW) Bataan Thermal power plant to be held within this month.

The Batangas-based 600-MW Calaca coal-fired power facility, on the other hand, would be undertaking a rebidding by October.

Meanwhile, the 12-MW Masiway hydropower plant, will be auctioned off by November, Lotilla said.

Also by November, he said they also expect the bidding of the 100-MW Pantabangan hydropower plant.

Lotilla said the privatization program will be intensified to reduce stranded debt and contribute to the management of the country’s deficit.

The intensified privatization program, he said, would involve the timely preparations for the updated sale schedule and bidding of National Power Corp. (Napocor) assets to include: timely resolution of plant specific

issues such as land titling, water rights/water charges, operation and maintenance of non-power component of hydroelectric plants; strategic modification for disposal of decommissioned plants; and deferred payments, with interest, for plants 100 MW and above to promote investor interest and optimize proceeds to government.

Lotilla said this program will also be geared towards the bidding out of 70 percent of independent power producer (IPP) contracts to IPP administrators.

He said they also expect the finalization of transition supply contracts, assets and contract transfer from Napocor to the Power Sector Assets and Liabilities Management Corp. (PSALM) and National Transmission Corp. (Transco).

The energy chief said they are also working for the disposal of the non-generating assets of Napocor.

Included in the intensified program, he said, is the new privatization program for Transco, which will be put in the auction block by the first quarter of 2006.

PSALM, an entity created under Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001, earlier said it hopes to sell about 70 to 80 percent of Napocor’s generation assets by end- 2005.

PSALM has so far privatized six plants with total combined proceeds of $567 million or $0.932 per MW of capacity. These represent 14 percent of the total generating capacity of Napocor plants in Luzon and Visayas.