PSALM eyes privatization of 2 power assets this year

MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is targeting to  privatizate  two energy assets this year.

These include the 165-megawatt (MW) Casecnan hydroelectric power plant (CHEPP) in Nueva Ecija and the 796.5-MW Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plants in Laguna.

Based on PSALM’s indicative schedule, public bidding as well as asset turnover to the winning bidder for the CHEPP is targeted within the first semester.

A pre-bid conference for the sale of the power generation asset located in Pantabangan, Nueva Ecija was conducted in November last year,  with submission of bids set on Feb. 24.

The CHEPP, which is combined irrigation and power generation project, was turned over to the government in 2021 after the 20-year build-operate-transfer scheme between the CE Casecnan Water and Energy Co. Inc. and the National Irrigation Administration (NIA) officially ceased on Dec. 11.

It was placed under the co-ownership of PSALM and NIA, which represent the government’s interest  at 60 percent and 40 percent, respectively.

The power asset is a run-of-river type of plant with limited impounding area.

The water from the reservoir flows into the plant’s powerhouse, down to the Pantabangan Lake and into the irrigation channels of the National Irrigation Administration, which will continue its mandate of irrigating farmlands even after the privatization.

Meanwhile, PSALM is looking to publish the invitation to bid for the CBK hydroelectric power plants within the first half.

Public bidding as well as the turnover of the independent power producer (IPP) contract to the winning bidder are eyed by the second half of 2023.

The CBK hydroelectric power plants are under an IPP administrator contract with CBK Power Co. Ltd. until Feb. 7, 2026.

The IPP administers the plant’s contracted capacity of 796.46 MW.

“We will continue to undertake asset disposal, power sales and collection of receivables to aid the government in boosting a sustainable economic recovery,” PSALM president and CEO Dennis dela Serna said.

“PSALM will remain committed to achieving its mandates. We will strive to get every effort into rebuilding the Philippine energy sector,” he said.

PSALM is the agency mandated by the EPIRA to handle the financial obligations of the National Power. Corp. through the privatization of government-owned assets, collection of the proceeds and its effective implementation of its liability management program.

“Inevitably, 2023 will bring new challenges. However, we must face this year with the knowledge that brighter days are ahead of us. Some challenges are great, but determination will help us rise up and resolve difficulties,” Dela Serna said.