PSALM mulls options on hydro plants’ sale

MANILA, Philippines – The Power Sector Assets and Liabilities Management Corp. is mulling more options in the privatization of two government-owned hydropower assets scheduled in 2017.

The state-run agency is undertaking a study on options for the sale of the 728-megawatt Caliraya-Botocan-Kalayaan (CBK) hydropower plant in Laguna and the 140-MW Casecnan multi purpose hydropower plant in Nueva Ecija, PSALM president and CEO Lourdes Alzona said.

She said they are currently conducting a study on allowing the independent power producer (IPP) contract holder to buy out government in the facilities.

“We are awaiting opinion on the other option like buy-out. If it can be considered on the legal side, then it will be sale of asset,” Alzona noted.

The study was advised by the Department of Finance (DOF) and Malacanang to check if the buy-out is in accordance with Electric Power Industry Reform Act (EPIRA) of 2001.

PSALM is the entity created by the EPIRA, the law that restructured the power industry by privatizing the assets of National Power Corp. (Napocor).

Alzona said the study is targeted for completion within the year to meet the 2017 target to privatize the assets.

“We are checking the legality so the type of privatization is still pending,” she said.

The CBK hydropower plant is being operated by CBK Power Co. Ltd., whose IPP contract runs until Feb. 7, 2026.

Meanwhile, the Casecnan facility’s operator is California Energy Casecnan Water and Energy Co. Inc. Its IPPA contract is until April 5, 2022.

Other government assets that have yet to be privatized include the 650-MW Malaya Thermal Power Plant in Pililia, Rizal, Power Barges 101, 102 and 103, and the 982-MW Agus-Pulangi hydropower plants in Mindanao.