06 Jan 2015
The Power Sector Assets and Liabilities Management (PSALM) Corporation has concluded its selection and appointment of Independent Power Producer Administrator (IPPA) for the Output of the Mindanao I and II (Mt. Apo 1 and 2) Geothermal Power Plants, as well as the Strips of Energy (IPPA-Strips) portion of its contacted capacities in the Unified Leyte Geothermal Power Plants (ULGPP) to their respective Winning Bidders.
"PSALM turned over the ownership of government's contracted capacities in these power plants at 0000 hours of 26 December 2014, which is the Effective Date," PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. said.
"It is such a delight that PSALM is bidding the year goodbye with high spirits, especially with another positive development in our privatization program. We share this joy to our new IPPAs and all our stakeholders," Mr. Ledesma added.
PSALM said it issued on Friday (19 December 2014) the Certificates of Effectivity to the winning IPPA for Mt. Apo 1 and 2, FDC Misamis Power Corporation, and the following winning bidders for ULGPP's Strips of Energy:
- Aboitiz Energy Solutions, Inc., which has been awarded 40 megawatts (MW) or 40 strips of energy;
- FDC Utilities, Inc. (FDCUI), 40 MW;
- Trans-Asia Oil and Energy Development Corporation, 40 MW;
- Unified Leyte Geothermal Energy Inc. (ULGEI), 40 MW;
- Good Friends Hydro Resources Corporation, 20 MW;
- Vivant Energy Corporation, with 17 MW; and
- Waterfront Mactan Casino Hotel Inc., three (3) MW.
The Winning Bidders in turn handed over to PSALM their respective Certificates of Closing, PSALM noted.
Mt Apo 1 and 2 IPPA
FDC Misamis emerged as the Highest Ranking Bidder during the bidding held by PSALM for its first Mindanao IPPA on 24 September 2014. FDC Misamis, which offered PhP128 million (PhP128,000,888.88) in Monthly Payment for PSALM's first Mindanao IPPA, edged out the PhP50-million (PhP50,000,000.00) bid of SMC Global Power Holdings Corporation, which also participated in the bidding.
PSALM officially launched the Mt. Apo IPPA auction on 14 May 2014 through an Invitation to Bid.
The Mt. Apo 1 and Mt. Apo 2 geothermal power plants have a rated capacity of 54.24 MW each, and are located in Kidapawan City, North Cotabato. Owned and operated by the Energy Development Corporation, the power plants were commissioned on 15 February 1997 (Mt. Apo 1) and 17 June 1999 (Mt. Apo 2) under a build, operate, and own contract scheme. The cooperation period for both plants is 25 years, and the same will expire on 15 February 2022 and 17 June 2024 for Mt. Apo 1 and 2, respectively.
The IPPA will manage the output of Mt. Apo 1 and 2 plants.
At the bid opening activity held on 07 November 2013, the seven (7) Winning Bidders for the ULGPP IPPA-Strips were declared as the Highest Ranking Bidders in the following order of the total 200-MW Strips of Energy:
- 40 MW or 40 strips for FDCUI, which offered a generation payment of PhP5.2588 per kilowatt-hour (kWh);
- 40 MW for ULGEI, which bid at PhP5.2100/kWh;
- 40 MW for Trans-Asia, which bid at PhP5.0166/kWh;
- 40 MW for Aboitiz Energy, which bid at PhP4.9188/kWh;
- three (3) MW to Waterfront Mactan, which bid at PhP4.9000/kWh;
- 20 MW to Good Friends Hydro, which bid at PhP4.8800/kWh; and
- 17 MW to Vivant, which bid at PhP4.6629/kWh.
Vivant's PhP4.6629/kWh offer - the bid price for the 200th strip of energy - was set as the winning price for the ULGPP IPPA-Strips.
For its structure, the ULGPP IPPA has been split into two components, namely: IPPA-Strips and the IPPA for Bulk Energy.
An IPPA can win the rights to strips of energy from the ULGPP that range from one (1) MW up to a maximum of 40 MW. Out of the 240-MW sum of strips, only 200 MW will be offered to the IPPAs, with the 40 MW remaining with PSALM as security capacity.
The IPPA for the Bulk Energy, on the other hand, will have the right to the capacity in excess of the 240-MW sum of strips. The obligation to trade ULGPP's total output (Bulk and Sum of Strips) as well as the necessary registration applications required by the Wholesale Electricity Spot Market shall lie solely with the IPPA for the bulk energy.
The second round of bidding for ULGPP's Bulk Energy is scheduled in 2015.
The ULGPP is composed of the 125-MW Upper Mahiao, 232.5-MW Malitbog, and 180-MW Mahanagdong power plants, and the 51-MW optimization plants. Located in Tongonan, Leyte Province, the ULGPP is covered by power purchase agreements between the National Power Corporation and the Energy Development Corporation.
Corporate Communications Division