MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM) is still undecided on the bidding scheme for the supply contracts of the 640-megawatt (MW) Unified Leyte geothermal power facilities, a top company official said.
PSALM president and CEO Emmanuel Ledesma Jr. said their board has yet to resolve this issue with Congress, noting that they have to thresh out these issues first before proceeding with the bidding.
“We’re still in discussions. Initially, some congressmen asked it be deferred for five years. We’re talking internally and with the PSALM board,” he said.
PSALM, created under the restructured Philippine electric power industry, is tasked to manage, privatize and dispose of all existing generation assets, liabilities, real estate and other disposable resources of National Power Corp. (Napocor).
The PSALM chief said they are studying a proposal to divide the Unified Leyte bidding into tranches.
“Part of concerns raised is whether to divide it, and the timetable for the privatization,” he said.
The Unified Leyte geothermal plants include the 125-MW Upper Mahiao plant, the 232-MW Malitbog and 180-MW Mahanagdong plants, and the 51-MW optimization plants. Energy Development Corp. (EDC) operates the steam plants.
Under the proposed bidding, the administrator of the Unified Leyte power plants will manage the contracted annual energy output from the power purchase agreements between Napocor and EDC. These contracts will expire in 2025 and 2026.