PSALM turns over Ambuklao-Binga power complex to Aboitiz-led group
The Power Sector Assets and Liabilities Management Corp. (PSALM) has formally turned over yesterday the 75-megawatt (mw) Ambuklao and 100-MW Binga hydroelectric power complex to SN Aboitiz Power Benguet Inc. (SNAP Benguet).
With its offer of $325 million for the Benguet-based power facilities, SNAP Benguet was declared the highest bidder for the Ambuklao-Binga power complex in the bidding held last Nov. 28, 2007.
The country’s first and second hydroelectric power plants, respectively, the Ambuklao-Binga power facilities run along the upper portion of
Binga, located in Itogon, Benguet, lies 19 kilometers downstream of the Ambuklao plant in the Bokod town of the same province.
Construction of the Ambuklao plant was completed in December 1956. Ambuklao’s three 25-MW generating units have been under preservation by the National Power Corp. since 2000. At present, the release of water from the Ambuklao Dam is being regulated for use by the Binga hydro plant.
The Binga plant consists of four 25-MW generators that were commissioned in 1960. It can operate as a base-load plant when the water level is high and as a peaking plant when the water level is low. It can also provide ancillary services.
One of the responsibilities of SNAP Benguet is to rehabilitate the Ambuklao plant and make it operational to 65 MW minimum within seven years from the date of turnover, PSALM pointed out.
SNAP Benguet will pay at least 70 percent of its bid or about $227.5 million. The entire bid amount will go to the liquidation of the National Power Corp.’s debts, as specified in the Electric Power Industry Reform Act, to ease the government’s debt burden.
PSALM has successfully bid out 12 power plants, representing a 48.9 percent privatization level. The asset management firm expects to reach the 70 percent privatization level as stipulated in the power reform law by yearend to facilitate open access and retail competition in the Philippine power industry.
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