Govt postpones sale of power assets for the second time

MANILA, Philippines - For the second consecutive time, the agency tasked to sell the Philippines’ electricity assets has postponed a deadline for the sale of two geothermal plants. In a statement, the Power Sector Assets and Liabilities Management Corp (PSALM) has allowed investors planning to acquire a geothermal plant in Tiwi, Albay and a similar facility in Laguna and Batangas to extend bid submissions for another 23 days to complete their documents. Originally scheduled for June 4, the bidding for the 289-megawatt (MW) Tiwi Geothermal Power Plant and the 458.53-MW MakBan Geothermal Power Plant situated in Laguna and Batangas was postponed “to heed the request of the nine prospective bidders for more time to complete their deliverables, including conducting their due diligence," the state-led company said. In May 6, PSALM issued a bid bulletin, postponing the bidding by one week to give foreign bidders more time to secure their authenticated documents from the Philippine consular offices abroad. The bidders are expected to submit their respective documentary deliverables this week. The issuance of the supplemental bid bulletin to the prospective bidders formalizes the changes, modifications and amendments made in the bidding schedule, PSALM added. PSALM also expressed confidence that qualified bidders will participate in the sale of the power assets previously owned by the National Power Corp. (Napocor). PSALM already allotted more than 400-MW of power supply contracts to Tiwi-MakBan power facilities, providing the new operator a ready market for the electricity that the facility will generate. With the expected sale of the Tiwi-MakBan geothermal complex, PSALM hopes to reach a significant output that will bring it closer to the 70 percent privatization target for Napocor’s generating assets in Luzon and the Visayas. Once undertaken, the transaction will fulfill one of the preconditions for implementing open access and retail competition in the Philippine electricity industry. Among the prospective bidders for the Tiwi-Makban are AP Renewables Inc. of the Aboitiz group; Intergen, Philippine National Oil Company-Energy Development Corporation, San Miguel Energy Corporation, AES Corporation, Suez Tractebel, First Gen Corporation, Korea Electric Power Corporation and One Energy of China Light & Power and Mitsubishi of Japan. After the Tiwi-Makban, PSALM said it will schedule next the auction for the 192-megawatt Palinpinon geothermal plant, which was lumped with the 110-MW Panay diesel plant. - GMANews.TV