Gov’t pursues sale of more power plants

MANILA, Philippines - The government is still pursuing the privatization of a number of power plants.

The privatization of the power sector had been the ultimate goal of the Electric Power Industry Reform Act of 2001 (EPIRA).

PSALM president and chief executive officer Emmanuel Ledesma Jr. said three remaining power plants would be up for privatization in the fourth quarter of the year.

“The remaining power plants for privatization this year are Mt. Apo 1 and 2, the Sucat power plant and Power Barge 104,” Ledesma said.

Mt. Apo 1 and 2 are geothermal plants located in Mindanao while the Sucat power plant has been a decommissioned power plant.

PSALM has issued the notice of award to SPC Power Corp. but Therma Power Visayas Inc. (TPVI), a subsidiary of AboitizPower, is making a last ditch effort to own and operate the facility.

TVPI asked the government to recall the Notice of Award and Certificate of Effectivity given to SPC, which was awarded the facility after the company exercised its Right to Top.

In April, PSALM awarded the Naga facility to TPVI but Salcon Power, which has a 2009 to 2020 land lease agreement with the government for the Naga facility decided to exercise its Right to Top by paying PSALM P1.143 billion for the facility.

These plants are the 52.5-MW Cebu 1 and 56.8-MW Cebu two coal-fired thermal power plants, and the 43.8-MW Cebu Diesel Power Plant 1 composed of six 7.3-MW bunker oil power units.