16 Firms vie for 2 govt power assets

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AT least 16 companies have expressed interest in two government-owned power assets that are lined up for privatization.

Earlier, the state-run Power Sector Assets and Liabilities Management Corp. (PSALM) successfully held pre-bid conferences for its selection and appointment of the Independent Power Producer Administrators (IPPAs) for the Bulk Energy of the Unified Leyte Geothermal Power Plants (ULGPP Bulk) and the 200-megawatt (MW) Mindanao Coal-Fired Thermal Power Plant (Mindanao Coal).

The investor groups eyeing the ULGPP Bulk IPPA are SPC Power Corp., Therma Central Visayas Inc., Trans-Asia Oil and Energy Development Corp. and Unified Leyte Geothermal Energy Inc.

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.


The ULGPP is covered by Power Purchase Agreements (PPAs) between the National Power Corp. (Napocor) and the Energy Development Corp. (EDC).

PSALM Officer-in-Charge Lourdes Alzona described the investors as serious in joining the bid.

Alzona said despite the setback caused by Super Typhoon Yolanda almost two years ago, the bidders have seen the importance and high prospects of this particular bid.

“You may seem small in number, but you are among those who have been seriously and actively pursuing our privatization program, with some of you already prevailing as winners of government’s power assets,” she added.

For Mindanao Coal, the 12 prospective bidders are Conal Holdings Corp., FDC Davao Del Norte Power Corp., FirstGen Northern Power Corp., GDF Suez Energy Philippines Inc.
Masinloc Power Partners Co. Ltd., Meralco Powergen Corp., Nexif Pte Ltd., SMC Global Power Holdings Corp., SPC Power Corp., Team (Philippines) Energy Corp., Therma Southern Mindanao Inc. (TSMI) and Vivant Energy Corp.

Alzona said there is much need for private sector infusion to ensure stable and reliable power supply in Mindanao.

“As the agency mandated under the law to privatize government’s power and related disposable assets, we hope that you will find your participation in this bidding activity a delightful experience, as we assure you that our processes are professional, fair and transparent,” she added.

PSALM has scheduled the bidding for the Mindanao Coal IPPA appointment for September 23.

Located in Misamis Oriental, the Mindanao Coal plant was constructed in 2006 for a 25-year Power Purchase Agreement under a Build-Operate-Transfer (BOT) scheme that ends in 2031.

“PSALM’s gains in its privatization program are all because of the private sector’s partnership, and for that PSALM will always be thankful to all of you,” Alzona said.

PSALM is a government corporation that oversees privatize power assets of the Napocor that include plants and contracted capacities of independent power producers.

Roughly 20 percent of Napocor’s assets are set to be privatized.

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