PSALM sets Tiwi-MakBan auction

29 Jul 2008

The Power Sector Assets and Liabilities Management Corporation (PSALM) is set to bid out the 747-megawatt (MW) Tiwi-MakBan geothermal power complex tomorrow (30 July) at the PSALM office in Makati.

Tiwi-MakBan is the first geothermal plant complex that the government privatization firm will be selling. The bidding will help boost the government's ongoing campaign to promote renewable energy sources such as geothermal and to lessen the country's dependence on imported oil.

PSALM is confident of gaining the full support and participation of possibly three qualified bidders in the bidding exercise as 475 MW of power supply contracts (PSCs) will be attached to the sale of the power facilities.

The PSCs will provide the new owner a ready market for the electricity that the power facility will generate. The PSCs, which is part of PSALM's commitment to accelerate the power privatization program of the government, is expected to optimize the value of the Tiwi-MakBan power plants.

With the sale of the Tiwi-MakBan geothermal complex, PSALM expects to reach a significant output that will bring it closer to the 70% privatization level for the generating assets of National Power in Luzon and the Visayas to fulfill one of the preconditions for implementing open access and retail competition in the Philippine electricity industry.

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