18 Mar 2005
The Power Sector Assets and Liabilities Management Corp. (PSALM) has scheduled the public bidding of 19 power plants all over the country this year in an effort to hasten the privatization process and pave the way for the operation of the wholesale electricity market and open access.
With the operation of the wholesale electricity market mechanism and open access, large power users can choose and contract directly to specific power generators by simply paying a wheeling fee for the use of the transmission and distribution lines.
PSALM is encouraging interested investors to conduct their preliminary reviews and obtain a better appreciation of the power plants to be sold even before the formal start of the sale process.
By allowing interested parties an early opportunity to conduct a preliminary review of these assets, PSALM hopes to reduce the time between individual sales and thereby expedite the privatization process, said Froilan Tampinco, PSALM vice president for Asset Management.
Scheduled to be placed on the auction block this year are 19 power plants including five decommissioned plants. These are:
• Coal-fired power plant - 600MW Calaca
• Hydroelectric plants - 75MW Ambuklao and 100MW Binga which will be offered as one package, 12MW Masiway, 100MW Pantabangan, 360MW Magat, 246MW Angat, and 0.8MW Amlan;
• Geothermal plants – 275MW Tiwi and 410MW Makban as one package, 150MW Bacman, 192.5MW Palinpinon, and 112.5MW Tongonan;
• Bunker Oil-fired 850MW Sucat, 146.5MW diesel-fired Dingle and the package of 620 MW combined cycle Limay and Bataan thermal site; and
• Decommissioned plants 225 MW Bataan Thermal, 200 MW Manila Thermal, 54 MW Cebu II, 22.3MW General Santos and 108MW Aplaya.
“We would like to stress that the preliminary asset review process is not part of any formal sale process. Those who could not do their preliminary reviews would still be allowed to submit their bids,” Tampinco added.
After submitting their letter of intent to conduct a preliminary review, the interested parties are required to sign a confidentiality agreement so they can have access to confidential information in the data room as well as asset site visits. Corresponding data room and preliminary site visit fees are charged by PSALM.
Tampinco said several interested parties have started conducting their preliminary reviews on certain plants. Tampinco, however, declined to reveal the identities of the parties as PSALM and these groups are bound by confidentiality agreements.
Strategic Communications and Partnership Division |