17 Jun 2011
The Power Sector Assets and Liabilities Management (PSALM) Corporation, in coordination with the Department of Energy (DOE), will resume the government's privatization program in the second semester of 2011.
PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. said PSALM is aiming to start the bidding process for the Naga Complex Independent Power Producer Administrator (IPPA) by September 2011. This will be followed by the bidding for the appointment of the Casecnan IPPA and the privatization of Power Barges (PB) 101 to 104 in the fourth quarter of this year.
According to Ledesma, the Naga Complex is composed of the 109-megawatt (MW) Naga 1 and 2 coal thermal power plants and the 37-MW Naga diesel power plant located in Naga, Cebu. An IPPA will also be appointed for the 165-MW Casecnan hydroelectric power plant in Nueva Ecija.
Ledesma further discussed that PSALM supports the plans and programs of the DOE to ensure the country's energy supply and security, including the possibility of retaining certain power plants under government ownership. However, he pointed out that the retention of certain power plants as security assets may have cost implications, especially the oil-based power facilities whose operating expenses are higher than other types of power plants.
PSALM, meanwhile, clarified recent reports on the funding for the rehabilitation of the Agus and Pulangui hydropower plant complexes as proposed by the National Power Corporation (NPC).
"Since PSALM signed the Operation and Maintenance Agreement with NPC, PSALM will fund the Agus-Pulangi rehabilitation either through income from power plant operations or through financing," Ledesma said.
Strategic Communications and Partnership Division |