PSALM to sell 25 Napocor gensets over next 2 years

The Power Sector Assets and Liabilities Management Corp. (PSALM) is expecting to sell 25 generating assets of the National Power Corp. (Napocor) this year and the next two years.

Based on the updated sale sequence, PSALM will sell 10 power plants, organized into eight asset packages that include the decommissioned and retired power plants this year.

These plants form part of the 25 remaining power facilities lined up for privatization until 2008.

Under the new genco sale line-up, PSALM will have to sell from January to June 2006: 600-MW Calaca; 275-MW Tiwi/410-MW Makban; and 100-MW Pantabangan/12 MW Masiway.

For the second half of 2006 or for July to December 2006, PSALM expects to auction off the 200-MW Manila Thermal bunker; 360-MW Magat Hydro; 620-MW Limay CC diesel; 114-MW Iligan I and II diesel/bunker; and 225-MW Bataan thermal bunker.

For the period January to June 2007, the government asset disposal firm is scheduled to sell the 22-MW Bohol diesel plant; 246-MW Angat hydro; 54-MW Cebu II diesel; and 192.5-MW Palinpinon geothermal.

From July 2007 to December 2007, PSALM will bid out the 112. 5-MW Tongonan geothermal; 22.3-MW Gen. Santos diesel; 75-MW Ambuklao/100 MW Binga hydro; 850-MW Sucat Thermal bunker; 0.8-MW Amlan hydro; and 210 MW Navotas I/ 100-MW Navotas II diesel.

For the first half of 2008, the genco assets that would be sold by PSALM include: 150-MW Bacman geothermal; 108- MW Aplaya diesel; and 146.5-MW Dingle (36.5 MW Panay I/110-MW Panay III) diesel/bunker.

This latest sale schedule will push back anew the earlier target of PSALM to sell 70 percent of Napocor generating assets in the first half of 2007.

Among the major causes of delay in the privatization of the gencos, PSALM said, are: creditors‚ consent; land titles; asset inventory; plant specific issues; inter-agency issues and transition supply contracts.

Republic Act 9136 or Electric Power Industry Reform Act (EPIRA) of 2001 mandates the sale of 70 percent of Napocor generating assets before the Open Access and Retail competition could be implemented.

PSALM had earlier targeted to sell 70 percent of the total Napocor’s generating assets in Luzon and Visayas by middle of 2006.

But based on original plan, PSALM should have sold the 70 percent by the end of 2005.

At present, PSALM, entity created under the EPIRA to handle the finances and the privatization of Napocor assets, has sold only 14 percent of the state-owned power firm’s generating assets.

PSALM has so far privatized six plants with total combined proceeds of $567 million or $0.932 per MW of capacity.