STATE-RUN Power Sector Assets and Liabilities Management Corp. (PSALM) is set to bid out the contracted capacity of the 640-MW Unified Leyte geothermal power complex and the independent power producer administrator (Ippa) contracts for the 140-MW Casecnan multipurpose hydroelectric power plant.
“We will bid out the contracted capacity of Unified Leyte and Casecnan more likely in late November,” PSALM President Emmanuel R. Ledesma, Jr. said in a statement yesterday.
He noted that PSALM targets to publish bid invitations and to bid the two power plants within this year.
“Our target is to bid out Unified Leyte within the year and publish invitations to bid for Casecnan also within the year,” he said.
“We are drafting a structure that will maximize participation of various industry participants,” Mr. Ledesma added.
Earlier, PSALM said it is awaiting the board approval for the bidding of the Unified Leyte and Casecnan multipurpose hydroelectric power plant to finally commence with the privatization targeted in the fourth quarter. The Unified Leyte geothermal plants, operated by Energy Development Corp. (EDC), include the 125-MW Upper Mahiao plant, the 232-MW Malitbog and 180-MW Mahanagdong plants, and the 51-MW optimization plants.
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 EDC. These contracts will expire in 2025 and 2026.
Meanwhile, 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 privatization of the contracted capacity of Unified Leyte and Casecnan is the next agenda of PSALM after the bidding for the four state-owned power barges, which was declared a failed bidding for the second round of the auction as well as for the subsequent bid negotiation with sole bidder Trans-Asia Oil and Energy Development Corp.
PSALM is also rebidding the one-year operation and maintenance of the 650-megawatt (MW) Malaya Thermal Power plant in Pililla, Rizal Province following a failed first round last month as sole bidder SPC Power Corp. was post-disqualified due to some documentary deficiencies.
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Source: Danessa O. Rivera, BusinessWorld. (11 September 2012)
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