EDC asks for a delay of the privatization of Leyte plant’s supply contracts to 2012
Energy Development Corporation is proposing to the Power Sector Assets and Liabilities Management Corporation (PSALM) to delay the privatization of the Leyte plants’ supply contracts to around 2012.
Reported from the Philippines, “The planned appointment of independent power producer administrator (IPPA) for the Unified Leyte geothermal plants is seen hobbled by array of factors, ranging from the need to wait for the kick-off of commercial operation of the Wholesale Electricity Spot Market (WESM) in the Visayas and for the resolution of power supply shortages in the area.
Given these hurdles, Energy Development Corporation (EDC) executive vice president Ernesto B. Pantangco is proposing to the Power Sector Assets and Liabilities Management Corporation (PSALM) to indeed delay the privatization of the Leyte plants’ supply contracts to around 2012.
“It will be better for PSALM to wait until the commercial operation of WESM in the Visayas and its integration with that of the Luzon grid spot market,” he stressed.
Pantangco said the company-seller will gain more leverage at fetching a better offer if there is some degree of market stabilization – either injected by the WESM’s operations or with the supply deficit getting plugged with investment influx.
The Unified Leyte facilities will have aggregate capacity of roughly 600 megawatts – including the 125-MW Upper Mahiao plant; 232-MW Malitbog, 180-MW Mahanagdong and the 51-MW Optimization plants.
PSALM has been scheduling next on the auction block the IPPA appointment for these facilities, supposedly to be lumped with the supply contract of the 150-MW Bacon-Manito geothermal plants.
Pantangco though opined that PSALM may already get ahead with the privatization of Bac-Man’s supply contract.”
Source: Manila Bulletin