THE Power Sector Assets and Liabilities Management Corp. (PSALM) said it will turn over next week management of the contracted capacities of the Mt. Apo geothermal power plants as part of its mandate to privatize state-owned power assets.
Emmanuel Ledesma Jr., PSALM president and chief executive officer, said the turnover means a lot to the agency. “It means a lot since it clearly shows that we are fulfilling our mandate in terms of privatization of NPC’s assets,” Ledesma said.
PSALM is the agency tasked to privatize state-owned power assets, including those of the National Power Corp. (Napocor).
Ledesma earlier said the notice of award for the Mt. Apo plants has already been issued to Misamis Power Corp. (MPC), a unit of Filinvest Development Corp. (FDC).
“The turnover of the Mt. Apo IPPAA will be on 26 December,” said Ledesma.
MPC emerged as the highest bidder with its P128-million offer during the auction for the independent power producer administrator (IPPA) contract held in September, besting the P50-million bid of its sole competitor, SMC Global Power Holdings Corp.
Ledesma explained that while both companies passed the technical and financial requirements, only FDC Misamis met the reserve price set by the PSALM Board.
Based on PSALM’s evaluation of the documentary deliverables it received from the prospective bidders, only seven investor groups qualified in the IPPA auction for the Mt. Apo 1 and 2 geothermal power plants.
These included EDC Mindanao Geothermal Inc.; GDF Suez Energy Philippines Inc.; Therma Southern Mindanao Inc.; Trans-Asia Oil and Energy Development Corp.; and Vivant Geo Power Corp.
According to Ledesma, the notice was issued to MPC after it submitted documents for the completion of a post-qualification evaluation.
With the turnover, MPC will be in charge of selling the capacity generated by the Mt. Apo power plants under two separate IPP contracts.
Each of the power plants has a capacity of 54.24 megawatts.
Located in Kidapawan City, North Cotabato, the power plants were commissioned on Feb. 15, 1997 and June 17, 1999 under a build-operate-and-own contract with Energy Development Corp.
The cooperation period for both plants is 25 years and will expire on Feb. 15, 2022 and June 17, 2024, respectively.