PSALM sets bid for Unified Leyte, Casecnan plants

MANILA, Philippines - State-run Power Sector Assets and Liabilities Management Corp. (PSALM) plans to auction the contracted capacities for two renewable energy projects as early as November.

The company is already drafting the terms of reference for the bidding, which hopes to snap a recent streak of failed auctions.

“Our target is to bid out Unified Leyte within the year and publish invitation to bid for Casecnan, also within the year,” PSALM president and CEO Emmanuel Ledesma Jr. said in a text message.

“More likely late November,” Ledesma said when asked on how soon can the state-run firm conduct the bidding.

Last month, PSALM said it will bid out the independent power producer administrator (IPPA) contracts as separate packages in the fourth quarter.

PSALM will auction the contracted capacities of the 640-megawatt (MW) Unified Leyte geothermal power plants in Leyte and the 140-MW Casecnan multipurpose hydroelectric plant in Nueva Ecija.

Conglomerate Ayala Corp., through its power unit AC Energy Holdings Inc., earlier said it is interested to join the bidding.

Ledesma said turnover is targeted in the first quarter next year.

CE Casecnan Water and Energy Co. Inc., which is owned by MidAmerican Energy Holdings Co., owns and operates the multi-purpose irrigation and hydroelectric power facility.

The Unified Leyte geothermal plants, on the other hand, include the 125-MW Upper Mahiao plant, 232-MW Malitbog and 180-MW Mahanagdong plants, and the 51-MW optimization plants. It is operated by Lopez-owned unit Energy Development Corp.

“We are drafting a structure that will maximize participation of various industry participants,” Ledesma said.

PSALM has encountered a number of failed auctions this year.

For instance, it declared the auction for four power barges a failure last month as lone bidder Trans-Asia Oil and Energy Development Corp. submitted an offer to buy the power barges for P95 million, way below the floor price.

Also last month, PSALM also failed to sign a deal with a company for the one year operation and maintenance of the 650-MW Malaya thermal power plant located in Pililla, Rizal.

PSALM is in charge of privatizing government power assets as well as managing National Power Corp.’s power plants and debt.