15 Mar 2007
The privatization of power assets should continue to reap gains as investor trust in the privatization process remains high, according to Finance Secretary Gary B. Teves.
“Last year, government held two successful bids for major hydro power assets with an aggregate price of USD659 million. We continue to enjoy healthy and mutually respectful relationships with our investors, all of whom have indicated their confidence in the integrity and transparency of our process,” Secretary Teves said. The Finance Secretary is also the Board Chairman of the Power Sector Assets and Liabilities Management Corporation (PSALM), the agency handling the privatization of the electric power industry.
In 2006, PSALM successfully bid out the 112-MW Pantabangan-Masiway hydro power complex in Nueva Ecija and the 360-MW Magat hydro plant in Isabela. Pantabangan-Masiway was turned over to First Gen Hydro Power Corporation in November 2006 while preparations are ongoing for the transfer of Magat plant to SN Aboitiz Power.
Energy Secretary and PSALM Vice Chairman Raphael P.M. Lotilla also said that since the first bidding in March 2004, bid outcomes have been well-accepted by the participating bidders.
“We are well aware that the credibility of the bid process itself is a major selling point of privatization. PSALM invested in establishing a trustworthy process which is why investors remain keen on the privatization program,” Secretary Lotilla added.
The recent successful bids bring the number of privatized plants to eight and the level of privatization to 11%.
PSALM President and CEO Jose C. Ibazeta said he will build on these gains by further improving investor relations and keeping a level playing field.
“There is no letting up. We have a bidding for the decommissioned Manila Thermal plant on 30 March and today (15 March) we issued the bid notice for the 600 MW Masinloc coal-fired power plant. We are also studying the feasibility of bidding out TransCo this year. We will do the best we can to make these succeed. Nothing attracts investors more than a successful program,” Pres. Ibazeta said.
Strategic Communications and Partnership Division |