PSALM assures no change in privatization scheme

The Power Sector Assets and Liabilities Management Corp. (PSALM) has assured that there will be no changes in its privatization tack amid the changing of the guard in the energy sector, a top official said.

“I believe it won’t change anything. We will continue with our privatization schedule,” PSALM vice president for asset management and electricity trading Froilan Tampinco said.

By the end of this month, former Environment Secretary Angelo Reyes will replace Energy Secretary Raphael P.M. Lotilla, who resigned recently.

Tampinco said right off, they would continue with the bidding for the 600-megawatt (MW) Masinloc coal-fired power plant tomorrow (July 26).

Among the groups that have reportedly expressed keen interest to bid for Masinloc are the Ranhill Group, Suez-Tractebel, International Power Pls., One Energy, First Gen Corp. and Trans-Asia Power Corp.

Industry sources said more groups have signified strong interest to bid for the Zambales facility despite indications from PSALM that the reserve price would be increased to as much as $450 million from only $388 million during the previous bidding.

On Aug. 1, PSALM will also start issuing the bid package for National Transmission Corp. (TransCo) in preparation for its bidding proper on Dec. 12, 2007.

Meanwhile, the 600-MW Calaca coal-fired power plant in Batangas is scheduled for auction in the third quarter of this year.

Based on a recent status report on the implementation of the Electric Power Industry Reform Act (EPIRA), the Department of Energy (DOE) has issued a policy directive to the energy family aimed at accelerating the privatization and promotion of competition in the Philippine electric power industry.

The EPIRA report is also pushing for the adoption of a semi-portfolio or pairing approach in National Power Corp. (Napocor)-generation companies (genco) sales.

The report said the privatization of the 600-MW Calaca and 600-MW Masinloc coal facilities will proceed as scheduled taking into consideration the tender documents that have been completed already.

“The modified or revised privatization plan and the new privatization strategies and design will only apply prospectively i.e., after Masinloc and Calaca efforts,” the report said.

The National Government is hoping to privatize 50 percent of the generating assets of Napocor by end of the year and 70 percent by 2008.