PSALM, NPC sign new O&M Agreement

13 Mar 2015

On Tuesday (10 March 2015), the Power Sector Assets and Liabilities Management (PSALM) Corporation has renewed its Operation and Maintenance Agreement (OMA) with the National Power Corporation (NPC) through a simple signing ceremony.

"Under the guidance of the Board of Directors of PSALM and NPC, we are happy to report that we have completed negotiations on the OMA with NPC, which will remain PSALM's service provider for much of its remaining power and related assets. The agreement is in accordance with Section 47(j) of the Electric Power Industry Reform Act, which states that 'NPC may generate and sell electricity only from the generating assets and IPP (independent power producer) contracts of PSALM,'" PSALM President and Chief Executive Officer (CEO) Emmanuel R. Ledesma, Jr. said.

The new OMA was formally signed by Mr. Ledesma for PSALM, and NPC President and CEO Ma. Gladys Cruz-Sta. Rita for the contractor.

Under the new OMA, NPC will operate, maintain, and manage PSALM's remaining power plants and appurtenant assets, other assets and other facilities. NPC is tasked to maximize plant availability and performance, minimize outages and operations and maintenance costs, minimize long-term deterioration of equipment, and prepare the assets for sale and transfer.

The OMA will cover the following remaining generating assets of PSALM: Power Barges 101, 102, 103 and 104; as well as the Agus and Pulangui hydroelectric power plants.

In addition, NPC shall provide personnel for supervision and preservation of PSALM's decommissioned plants and other facilities to prevent the deterioration of serviceable equipment and systems prior to disposal or privatization.

PSALM's remaining decommissioned or retired power facilities include the Sucat Thermal Power Plant located in Muntinlupa City, Metro Manila; and the Bataan Thermal Power Plant in Limay, Bataan.

Likewise, NPC shall also provide personnel for the excluded assets from sold plants identified by PSALM, and continue to discharge its duties and obligations under existing IPP contracts, prosecute and defend cases related to assets covered by the OMA, and undertake titling for PSALM's real estate assets.

Corporate Communications Division
Tel. No. (632) 9029067