6 major power plants to be sold next year

MANILA, Philippines -The Power Sector Assets and Liabilities Management Corp. (PSALM), the state-run overseer of power assets, has lined up six huge power plants for privatization next year.

Based on official data, PSALM has scheduled first the sale of the 246-megawatt (MW) Angat power plant in February 2010.

PSALM is a state entity created under the Electric Power Industry Reform Act (EPIRA) to handle the privatization of National Power Corp.’s assets, including their contracted capacities.

Other power plants included in the 2010 disposal list are the 150-MW Bacon Manito; the 235-MW Bauang; the 310-MW Navotas; the 114-MW Iligan I and II; and the 850-MW decommissioned Sucat.

From 2011 to 2013, PSALM will be selling off seven more power plant packages. These include the 982.1-MW Agus 1-7 and Pulangi; 650-MW Malaya; Power Barges 101, 102,103, 104 with 32 MW capacity each and the 149-MW Cebu Coal I and II and Cebu Diesel I.

PSALM has already concluded its power plants’ sale process for 2009 with the successful negotiated bid of the Naga land-based gas turbine late last week.

It is also expected to conduct the second wave of bidding for the independent power producer administrator (IPPA) in the contracted capacities of the San Roque, Bakun and Benguet hydroelectric plants.

The privatization level for Napocor’s assets in Luzon and Visayas is currently at 81 percent with the recent sale of the Calaca coal-fired power plant and the Palinpinon-Tongonan geothermal plants. 

This brings the government’s privatization revenues from the sale of Napocor power plants to $2.99 billion.

In addition, three turned-over Napocor-IPP plants, previously under a build-operate-transfer scheme, were also privatized. These are the 620-MW Limay combined cycle power plant in Luzon and Power Barges 117 and 118 in Mindanao.

PSALM has also successfully auctioned off the management of contracted capacities of the Sual and Pagbilao coal-fired power plants. 

This is equivalent to 34.3 percent of the Napocor contracted capacities in Luzon and Visayas worth $1.77 billion.