26 Jan 2005
The government today formally closed the sale of the 3.5 megawatt (MW) Talomo hydroelectric plant (HEP) and the 1.8 MW Barit HEP in simple ceremonies at the Department of Energy.
Present at the ceremonies were representatives from government power sector agencies, members of the press, and the winning bidders of Talomo and Barit HEP, namely, Hydro Electric Development Corp. (HEDCOR) and US-based Filipino lawyer Ramon Constancio, respectively.
Energy Secretary Vince S. Perez, who is also the Chairman of the Privatization, Bids and Award Committee (PBAC), gave his statement reaffirming the government’s continued efforts to restructure the power industry, as reflected by the success of the recently concluded proceedings.
The Talomo HEP, located in Davao, was awarded to HEDCOR after topping the bid exercise conducted by PSALM on March 25 last year with its $1.37 million proposal. Talomo HEP is also the first generation asset of the government to be privatized.
Barit HEP was successfully bid out last June 25, 2004 to Atty. Constancio who posted a winning offer of $480,000. The power generation facility is located in Camarines Sur.
The sale of Talomo and Barit HEP were conducted in accordance with Republic Act No. 9136, also known as the Electric Power Industry Reform Act (EPIRA), which mandates PSALM to manage the orderly sale, disposition and privatization of NPC generation assets.
The proceeds from the privatization of the Talomo and Barit HEP will infuse additional resources into the government’s treasury and will help address the debt burden of the National Power Corporation.
Strategic Communications and Partnership Division |