30 Mar 2007
The second semester of 2007 promises to be a busy one for the Power Sector Assets and Liabilities Management Corporation (PSALM) as it readies the reentry of its other coal-fired power facility to this year's auction bloc - the 600-megawatt (MW) Calaca Coal-Fired Thermal Power Plant - even as the investors who had signified interest in bidding for the 600-MW Masinloc coal-fired power plant prepare for the Due Diligence period.
PSALM has also decided to move the scheduled 30 March bidding for the decommissioned Manila Thermal Power Plant in the last quarter of the year. The structure of, and process for this type of asset sale is being reviewed to ensure better success at disposing them.
"PSALM is now making the necessary preparations for the conduct of the bidding exercises for the Calaca plant," said PSALM vice president for Asset Management and Electricity Trading Froilan A. Tampinco. "We hope to privatize the plant by the second semester of this year."
Mr. Tampinco disclosed that the government's power privatization arm is currently reviewing the valuation of the Calaca power facility, which includes the attachment of a substantial power supply allocation to the package.
"While this will be the third round of bidding for the Calaca plant, we know that investors remain keen on acquiring this particular asset. But they continue to be apprehensive primarily due to the lack or insufficiency of power supply allocations," Mr. Tampinco pointed out. "PSALM is now coordinating with National Power to address this concern."
The Calaca facility was first offered to prospective investors in June 2005, but the auction was cancelled after two of the three qualified bidders backed out shortly before the deadline for submission of offers.
The second round of bidding, which was held on 27 April 2006, was also declared a failure because the price proposals submitted by the two bidders were below the reserve price.
Strategic Communications and Partnership Division |