POWER Sector Assets and Liabilities Management Corp. (PSALM) plans to conduct another auction for the privatization of the 153.1-megawatt (MW) Naga power plant complex in Cebu this month, its top official said on Friday last week.
Feb 022014
Jan 312014
MANILA, Philippines – The Power Sector Assets and Liabilities Management Corp. (PSALM), the state agency tasked to oversee the privatization of power assets, will start the selection and appointment of the independent power producer administrator (IPPA) for the Mindanao-based Mt. Apo 1 and 2 geothermal power plants. PSALM president Emmanuel Ledesma, Jr. said during the meeting of the board of directors on Jan. 29, “we have been given the authority to commence the sale process for the Mt. Apo IPPA selection, and we plan to conduct the bidding in the third quarter of this year.” He said PSALM would use the same structures used in the selection and appointment of IPPA for the bulk energy of the Unified Leyte Geothermal Power Plant, which was bid out last year. The IPPA for the Mt. Apo plant will manage two government contracts, with contracted energies of 390 gigawatt-hours (gwh) and 398 gwh per year, respectively. The Mt. Apo 1 and Mt. Apo 2 geothermal plants, each with a rated capacity of 54.24 megawatts, are located in Kidapawan City, North Cotabato. Owned and operated by Energy Development Corp., the power plants were commissioned in February 1997 (Mt. Apo 1) and June 1999 (Mt. Apo 2) under a build-operate own contract scheme. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The cooperation period for both plants is 25 years, which would expire on Feb. 15, 2022 for Mt. Apo 1 and on June 17, 2024 for Mt. Apo 2.
Jan 292014
MANILA, Philippines – The Power Sector Assets and Liabilities Management Corp. (PSALM), the government agency tasked to privatize state-owned power assets, will rebid the selection and appointment of the Unified Leyte independent power producer administrators (IPPAs) for bulk energy, its top official said. PSALM president Emmanuel Ledesma Jr. said that the rebidding would be in September 2015. But while PSALM said it would rebid the selection of IPPAs for Unified Leyte’s bulk energy, it already approved the award of IPPAs for the strips of energy but the issuance of certificate of effectivity will be moved by one year because of Super Typhoon Yolanda which affected the Unified Leyte plant. This after the winning bidder, Unified Leyte Geothermal Energy Inc. (ULGEI) withdrew from the project. “The board (of PSALM) approved the withdrawal of ULGEI as winning bidder for bulk energy,” Ledesma said. ULGEI tendered a bid of P215 million for the Unified Leyte IPPA for bulk energy and met the reserve price set by the PSALM board but consequently withdrew from the project. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 According to PSALM, an IPPA for the bulk energy will have the right to the capacity in excess of the 240-megawatt 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, PSALM said. Unified Leyte is composed of the 125-MW Read More …
Nov 082013
Power Sector Assets and Liabilities Management Corp. (PSALM) has named the highest bidders for the independent power producer administrator (IPPA) contracts of the Unified Leyte geothermal power plant’s contracted capacity.
Nov 072013
THE PRIVATIZATION of the 153.1-megawatt (MW) Naga power plant complex failed again after only one firm participated in the second round of bidding by the Power Sector Assets and Liabilities Management Corp. (PSALM) yesterday.
Nov 012013
MANILA, Philippines – The Power Sector Assets and Liabilities Management Corp. (PSALM), the agency overseeing the government’s power assets, has moved anew the bidding for the 153-megawatt Naga power plant and the Unified Leyte contracts, officials said. The bidding, which was already moved to last month, has been rescheduled to Nov. 8 for the Naga facility and on Nov. 7 and 8 for Unified Leyte. The decision to move the bidding came after interested parties requested for more time to prepare their offers. PSALM targeted to rebid the Naga facility on Oct. 15, then on Oct. 30, after a failed attempt to sell the plant last July. Three investor groups have expressed interest in bidding for the power asset. PSALM said the second round of bidding attracted SPC Power Corp., Therma Power Visayas Inc., and RD Corp. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 All three groups have completed the initial requirements for the bid, including the submission of a letter of interest, the payment of a non-refundable participation fee of P120,000 and the execution and submission of a confidentiality agreement and undertaking with PSALM. Previously, four groups expressed interest in the Naga Power Plant, which PSALM tried but failed to sell in July. These are DMCI Holdings Inc., the Aboitiz Group, D.M. Wenceslao and SPC Power Corp. Located in Colon, Naga City in Cebu, the facility consists of two thermal power plants and one diesel-fired power plant that use a combination of coal, bunker oil and diesel as Read More …
Aug 212013
MANILA, Philippines – The Power Sector Assets and Liabilities Management Corp. (PSALM), the agency tasked to oversee the privatization of the government’s power assets, will review the terms for the sale of the 153.1-megawatt Naga Plant in Cebu after last month’s failed bidding. An official said the government would have to “review the price” as it may be too high to attract investors. “PSALM will assess if the price is attractive enough,” the official said, adding that the agency would again try to resell the plant this year. “PSALM will try to do another round of bidding this year,” said the source who declined to be identified due to the sensitivity of the issue. In July, the PSALM Bids and Awards Committee (PBAC) declared a failure of bidding for the Naga plant after only one bidder submitted documents deemed compliant by the committee. “Pursuant to the bidding procedures, should only bidder submit documentary deliverables that is deemed compliant by the PBAC, there shall be a failure of bidding,” PSALM said in a notice issued last month. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Under the original terms, the winning bidder will be required to issue a P93.86 million performance bond to PSALM. Sources said the failure of bidding was not expected after four groups earlier expressed interest in bidding for the plant. DMCI Holdings Inc., the Aboitiz Group, D.M. Wenceslao and SPC Power Corp. joined the pre-bid conference for the Naga Plant privatization. The Naga complex in Cebu Read More …
Aug 042013
THE COURT of Tax Appeals (CTA) has lowered the tax dues of state-run Power Sectors Assets and Liabilities Management Corp. (PSALM) in relation to liabilities charged by the Bureau of Internal Revenue for 2006.
Jul 212013
STATE-RUN Power Sector Assets and Liabilities Management Corp. (PSALM) plans to conduct another auction for the privatization of the 153.1-megawatt (MW) Naga power plant complex in Cebu after only one firm pre-qualified to participate in the bidding that was supposed to take place on Wednesday.
Jul 142013
MANILA, Philippines – Energy Secretary Carlos Jericho Petilla hopes to seal a compromise deal with the Korean company that won the bidding for the Angat hydropower plant before the end of the year. “Hopefully by the end of the year, we can come up with a win-win solution,” Petilla said. Korea Water Resources Corp. (K-Water) is currently negotiating to bring down the $440.88-million price tag on the facility, citing the state of the facility as well as several changes the government put in the agreements signed by both parties. “What we’re looking for is a win-win solution for everybody and that includes all the players – PSALM (Power Sector Assets and Liabilities Management Corp.), DOF (Department of Finance), K-Water, MWSS (Metropolitan Waterworks and Sewerage System) and DOE (Department of Energy),” Petilla said. K-Water won the bidding that PSALM conducted in 2010 for the 218-megawatt plant, which sources its power from the Angat Dam in Bulacan. In 2010, K-Water topped the bidding that PSALM conducted for the 218-megawatt plant, which is fueled by water from the Angat dam in Bulacan. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In a recent letter to PSALM, K-Water said it wants to “achieve the same level of benefits expected” in its 2010 bid for the power plant and wants the plant’s auxiliary units four and five to be included in the takeover. The auxiliary units in question are owned by MWSS. On the back of these complex issues, K-Water wants to reduce the purchase price of the Read More …