PSALM to pursue privatization of remaining Napocor assets

The Power Sector Assets and Liabilities Management Corp. (PSALM) is set to pursue privatization of the remaining assets of National Power Corp. (Napocor), its top official said. PSALM has already scheduled the sale of Cebu-based Naga power complex next month, according to PSALM president Emmanuel Ledesma. "We're targeting Naga bidding for mid-June," he said, amid calls for PSALM to remain robust in its privatization efforts. PSALM had early this year noted a number of parties interested in the Naga complex, including SPC Power Corp. and San Miguel Corp. Naga is composed of the Cebu Power Plant Complex 1 with 55 megawatts (MW) of capacity, Cebu Power Plant Complex 2 with 55 MW and the Cebu Diesel Power Plant with 39 MW. The entire complex has a total capacity of 149 MW. To date, PSALM had sold 91.73 percent of the generating assets in the Luzon and Visayas grids, generating $3.467 billion from them and $3.23 billion from independent power producers contracts. Other assets it has yet to privatize include the 850-MW Sucat Thermal Plant and the 630-MW Malaya Thermal Plant. PSALM also has yet to bid out the contracted capacities of the Unified Leyte geothermal plants, whose assets include the 125-MW Upper Mahiao Plant, the 232-MW Malitbog and the 180-MW Mahanagdong plants and the 51-MW Optimization plants. Energy Development Corpo. operates the said steam plants. Meanwhile, members of the Philippine Independent Power Producers Association has called on PSALM to continue giving way to open access and retail competition in the power industry in its moves to privatize Napocor's reamining assets. These two schemes will allow big power consumers to choose where to source their electricity needs. —JMT/VS, GMA News