• PSALM renews service contract with NPC

    0

    STATE-RUN National Power Corporation (NPC) will remain as the service provider for much of the remaining power and related assets of Power Sector Assets and Liabilities Management (PSALM), as the latter has renewed its Operation and Maintenance Agreement (OMA) with NPC.

    “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,” PSALM President and Chief Executive Officer (CEO) Emmanuel R. Ledesma, Jr. said.

    Under the updated OMA, NPC will operate, maintain, and manage PSALM’s remaining power plants and appurtenant assets, other assets and other facilities.

    Among PSALM’s generating assets that are covered by OMA include Power Barges 101, 102, 103 and 104 as well as the Agus and Pulangui hydroelectric power plants.

    NPC is tasked to maximize plant availability and performance, minimize outages, and manage operations and maintenance costs of these assets.

    It is also tasked, under the OMA, to minimize long-term deterioration of equipment, and prepare the assets for sale and transfer.

    In addition, NPC shall provide personnel for supervision and preservation of PSALM’s decommissioned plants and its other facilities.

    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.

    |“This is to prevent the deterioration of serviceable equipment and systems prior to disposal or privatization,” PSALM said in a statement.

    The 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 Independent Power Producers (IPP) contracts.

    The NPC shall also prosecute and defend cases related to assets covered by the OMA, and undertake titling for PSALM’s real estate assets.

    The agreement is in accordance with Section 47(j) of the Electric Power Industry Reform Act (EPIRA).

    The law states that ‘NPC may generate and sell electricity only from the generating assets and IPP (independent power producer) contracts of PSALM.

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

    Share.
    loading...
    Loading...

    Please follow our commenting guidelines.

    Comments are closed.