27 Nov 2007
It will be a showdown of three previous winners in the privatization program of the Power Sector Assets and Liabilities Management Corporation (PSALM) which will auction off the 75-megawatt (MW) Ambuklao and 100-MW Binga hydroelectric power plants today (28 November 2007).
Calaca Power Partners Co. Ltd., First Gen Hydro Power Corporation and SN Aboitiz Power Hydro Inc. (SNAP) will contest the right to own and operate the Northern Luzon-based Ambuklao-Binga power facilities.
Calaca Power, operating under the name Masinloc Power Partners Co. Ltd., won the bidding for the 600-MW Masinloc Coal-Fired Thermal Power Plant held last 26 July. The general partner of Calaca Power is AES Calaca Pte Ltd., a Singaporean Limited liability company licensed to do business in the Philippines. Calaca's limited partner is AES Saint Petersburg Holdings B.V., a Dutch Limited liability company.
With a bid of USD129 million, First Gen was declared the winning bidder for the 112-MW Pantabangan-Masiway Hydroelectric Power Plant Complex that PSALM auctioned off on 08 September 2006. The plant is located in Nueva Ecija.
In an auction held on 14 December 2006, SNAP offered USD530 million for the 360-MW Magat hydroelectric power plant which has the largest generating capacity among the operating hydroelectric power plants on the sale block. SNAP and PSALM recently signed the Deed of Absolute Sale for the Isabela-based facility to complete its privatization.
Based on the recommendation of the National Power Corp. and the preference of the bidders, power supply contracts will not be attached to the sale of the Ambuklao-Binga complex. Because of the seasonal operation of the hydro plants, they only generate electricity when there is a sufficient amount of water in the reservoirs. In this case, a power supply contract may not be advantageous to the prospective owner, as it may find it difficult meeting the projected contract level assigned in the supply contract.
The country's first and second hydroelectric power plants, respectively, the Ambuklao-Binga power facilities complexes run along the upper portion of Luzon's longest waterway, the Agno River. Binga, which is located in Itogon, Benguet, lies 19 kilometers downstream of the Ambuklao plant in the Bokod town of the same province.
Construction of the Ambuklao plant was completed in December 1956. Ambuklao's three 25-MW generating units have been under preservation by the National Power Corp. since 2000. At present, the release of water from Ambuklao is being regulated for use by the Binga hydro plant. The Binga plant, on the other hand, consists of four 25-MW generators, which were commissioned in 1960. It can operate as a base-load plant during high water levels and for peaking during low water levels. It can also provide ancillary services.
One of the responsibilities of the winning bidder is to rehabilitate the Ambuklao hydro plant and make it operational to 65 MW, minimum, within a period of seven years from the date of turnover, PSALM stated.
PSALM expects to reach a 50% privatization level by end of the year to facilitate open access and retail competition. It has successfully bid out around 39% of the total operating capacities in Luzon and Visayas as of October 2007.
Strategic Communications and Partnership Division |