24 investors eye four power plants

17 Feb 2006

Twenty-four investor groups have signified interest in bidding for four of the power plants being sold by the Power Sector Assets and Liabilities Management Corp. (PSALM).

The government's privatization arm yesterday disclosed that the 24 investor groups are a good mix of one (1) Australian, one (1) European, five (5) Asian, including two Japanese, five (5) American, and 12 Filipino companies.

Eleven (11) of the 24 investors are vying for just one plant, seven (7) are interested in two plants, five are contending for three plants, and one company is positioning itself on all four plants.

One of the investors bidding for a hydroelectric power plant had already won one of the five hydroelectric power facilities bid out in 2004.

Four of these investor groups are bidding for the Calaca coal-fired thermal power plant. The Magat and the Pantabangan Masiway hydroelectric power plants each has 13 potential bidders. Fifteen investor groups expressed interest in the Tiwi-Makban geothermal power plant.

PSALM Vice President for Asset Management and Electricity Trading Group (AMETG) Froilan A. Tampinco declined to disclose the identities of the bidders as PSALM is bound by the Confidentiality Agreement with the bidders.

He, however, expressed his appreciation for the investors' continued interest, particularly in the hydroelectric assets of the government. He assured them that PSALM, in coordination with other government agencies, is continuously seeking resolution of the issues raised regarding the assets.

"We are steadfast in making sure that all concerns and issues are addressed and ironed out first so winning bidders of these plants can focus on the efficient and unhampered operation of said plants," Mr. Tampinco explained.

The Calaca, Pantabangan-Masiway and Tiwi-Makban power complexes are set to be bid out in the first half of the year, while Magat is set for the third quarter.

Strategic Communications and Partnership Division
Tel. No. (632) 9029067