3 groups eye 114-MW Iligan diesel power plant complex

Three investor groups have expressed interest to bid for the 114-megawatt (MW) Iligan I & II diesel power plant complex, the Power Sector Assets and Liabilities Management Corp. (PSALM) said.

PSALM president and CEO Jose Ibazeta said the three groups, which have all completed the preliminary requirements for the bidding, attended the pre-bid conference at the PSALM main office in Makati City last week.

Ibazeta did not disclose the identities of the three parties but hinted they are all local entities.

The PSALM chief said the three prospective bidders are currently conducting their respective due diligence to assess and appraise the Mindanao-based power asset.

At the pre-bid conference, Ibazeta said they discussed and clarified issues raised on the bidding procedures.

While the sale of the Iligan plant complex will not form part of the 70-percent asset privatization threshold required under the Electric Power Industry Reform Act as one of the preconditions for the implementation of open access and retail competition, PSALM stressed the importance of the bidding, especially for Mindanao, where power supply is getting tighter. Open access will allow consumers to choose where to source their own power requirements.

Ibazeta did not also explain why these plants are not counted in the computation of the privatization level.

By October this year, PSALM expects to hit the 70 percent privatization level.  With the recent successful bidding of the Tiwi-Makban geothermal complex, PSALM said they have already reached the 68.8-percent privatization level.

The Iligan power plants will be placed in the auction block on Oct. 15 this year.

Situated in the locality of Mapalad, Dalipuga in Iligan City, approximately 74 kilometers southwest of Cagayan de Oro City, the power plant complex runs on Bunker C and/or diesel fuel types for its start-up and shutdown operations.  Both units were commissioned in 1993.   – Donnabelle Gatdula