Norwegian firm eyes contracted capacities of Angat, Agus-Pulangi power plants

MANILA, Philippines - Norwegian power firm Statkraft Norfund Power Invest AS (SN Power), through its unit SN Power Philippines, is looking at the possibility of bidding for contracted capacity of Angat power plant and Agus-Pulangi hydro power plants.

Aside from the Philippines, SN Power has investments in hydroelectricity in Chile, India, Nepal, Peru and Si Lanka. The company is a joint venture between Statkraft Norfund, both owned by the government of Norway.

SN Power Philippines country representative Rodolfo Azanza told reporters that they are currently conducting due diligence on Angat.

“We were able to conduct a due diligence. We’re looking at the possibility of bidding for Angat,” he said.

The Power Sector Assets and Liabilities Management Corp. (PSALM) scheduled the sale of 246 megawatt (MW) Angat power plant in February 2010, which will be the first privatization effort for next year.

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 its contracted capacities.

Located in San Lorenzo, Norzagaray, Bulacan, Angat hydro power facilities began commercial operation on July 1967 with the commissioning of Auxiliary Units 1 and 2 and was later followed by Main Generating Units 1 and 2 on October 1967. Two more generating units came into operations, the main units 3 and 4 in August 1968.

On Agus hydro power plants, he said they are awaiting formal notice from PSALM on how to go about the sale of these power plant.

“We have not received any information on Agus. As soon as EPIRA (Electric Power Industry Reform Act) allows it. Everybody is waiting for the announcement of PSALM. Then we will start visiting, Agus 1-7 and we do not know which ones will be privatized,” he said.

Under the EPIRA, the Agus-Pulangi power plants will only be sold 10 years after the passage of the law which was in 2001.

Azanza said the company had a visit in one of the Pulangi power plants-Pulangi 4.

But he said they have yet to decide on moves to take upon determining the final deal structure to be made by PSALM.

“The interest is subject to the final deal structure that PSALM offered. There are uncertainties that would change the decision of the owners,” he said.

He said “in general, the partners are interested in Pulangi 4. Angat looks like it gonna be complicated although we are interested, it would be subject to the final deal structure thatPSALM will offer.”

PSALM earlier said it would start the preparation for the sale of Agus and Pulangi hydropower plants by the second half of 2009.

PSALM president Jose Ibazeta was earlier quoted that they would make necessary preparations for the privatization of these two big hydro assets this year though they would be put in the auction block in 2011.

Napocor’s Mindanao Generation currently operates Agus Hydroelectric Power Complex.

The Agus has seven facilities with total capacity of over 700 megawatts. The first Agus plant, Agus 6, was created in 1953. The newest of the Agus power plant is Agus 1 which went online in 1992.