PSALM to bid out Leyte geothermal complex next yr

MANILA, Philippines - The state-run Power Sector Assets and Liabilities Management Corp. (PSALM) will push through with the privatization of the 640-megawatt (MW) Unified Leyte geothermal power plants early next year.

“Unified Leyte [bidding] will be in the first quarter next year,” PSALM president and CEO Emmanuel Ledesma said.

He said the government also came up with the privatization scheme for the geothermal complex’s contracts. “(We) have decided to break the Unified Leyte contracts into two or three contracts,” he said.

But the PSALM chief said they have yet to determine the size of each contract. “Size per contract is being reviewed,” he said.

Dividing the auction of the geothermal contracts into two or three tranches would avoid bidders to breach generation cap for the Visayas grid set by the power regulators.

Based on the previously drafted bidding rules, the capacities will be divided 60-40, or the capacities will be bid out at 384 MW and 255 MW, respectively.

It would be noted that the privatization of Unified Leyte was supposed to be held last July but was postponed over concerns that the selling of the assets would lead to higher rates in the province.

The administrator of the Unified Leyte power plants will manage the contracted annual energy output from the power purchase agreements between National Power Corp. (Napocor) and Energy Development Corp. (EDC). These contracts will expire in 2025 and 2026.

EDC, owned by the Lopezes, is the owner of the steam plants, which include the 125-MW Upper Mahiao, 232-MW Malitbog, 180-MW Mahanagdong and 51-MW optimization plants.

Among the parties that earlier expressed interest to participate for the Unified Leyte contract bidding were Aboitiz Power Corp., Pacifica Inc. of the Romero Group and First Gen Corp., the parent firm of EDC.