05 May 2010
The Power Sector Assets and Liabilities Management (PSALM) Corporation successfully conducted the privatization of the 150-megawatt (MW) Bacon-Manito (BacMan) geothermal power plant package today (05 May 2010), with Bac-Man Geothermal Inc. of the Lopez group emerging as the highest bidder.
Bac-Man Geothermal's offer of USD28.25 million (USD28,250,000) for the Bicol-based geothermal plants bested the USD17.8-million (USD17,800,000) bid of Therma Power Inc., a subsidiary of the Aboitiz group.
Both bids exceeded the reserve price set by the PSALM Board for the BacMan facilities.
The Lopez group is among the most active participants in the government's power privatization program, having successfully acquired five plant portfolios: the 1.6-MW Agusan and the 112-MW Pantabangan-Masiway hydropower plants, and the 305-MW Palinpinon-Tongonan geothermal power plant package.
Adhering to its bidding policy, PSALM will formally declare Bac-Man Geothermal as the winning bidder for the BacMan plants as soon as it has verified the accuracy, authenticity, and completeness of the bidding documents that the company had submitted.
With the successful sale of the BacMan plants, PSALM's privatization level has reached the 91.73% mark for all its generation assets in the Luzon and Visayas grids. PSALM expects to complete the privatization of these assets this year.
Located in the provinces of Albay and Sorsogon, the BacMan plant package consists of two steam plant complexes. The BacMan I geothermal facility comprises two 55-MW turbines, which were both commissioned in 1993. BacMan II, on the other hand, consists of two 20-MW units namely, the Cawayan located in Barangay Basud and the Botong in Osiao, Sorsogon City. The Cawayan unit was commissioned in 1994 and the Botong unit in 1998.
The Energy Development Corporation supplies the steam fueling the BacMan geothermal power plants.
Corporate Communications Division