PSALM to move ahead with privatization of National Power assets

03 Jul 2006

The Power Sector Assets and Liabilities Management Corporation (PSALM) is bent on moving ahead with the auction of the transmission facility and other generation assets of the National Power Corporation scheduled this year.

PSALM, the agency mandated to privatize the assets of the National Power Corporation, made the assurance to quell unfounded speculations that the government's privatization program for the electric power industry will be hampered because of the failure of YNN Pacific Consortium to meet the June 30 deadline to deliver the $227.54 million upfront payment. PSALM has called on the $14-million performance bond.

"The government's restructuring and privatization program for the power industry will not be hindered because we're moving ahead with the bidding for the assets of National Power scheduled this year," assured Mr. Froilan Tampinco, PSALM vice president for Asset Management and Electricity Trading. "It is incumbent upon PSALM to be at the forefront in implementing the necessary reforms in the power sector."

Mr. Tampinco's assurance is a welcome development for bidders of the 100-megawatt (MW) Pantabangan and 12-MW Masiway hydroelectric power plants, the 275-MW Tiwi and 425.73-MW Makban geothermal facilities, and the 360-MW Magat hydro power plant whose sale processes are still ongoing.
Mr. Tampinco said that investors who have expressed interest in joining the bidding exercises could continue conducting their due diligence for these plants. The bid date for each plant package will be set by PSALM.

Seven bidders have also signified their intention to bid for the National Transmission Corporation's (TransCo) 25-year concession which is slated to be bid out in September 2006. Of the seven groups who have submitted their expressions of interest to PSALM, five have received their bid documents and are now starting their due diligence for the TransCo facility.

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