Philippines looking at privatizing Bacon-Manito now operated by EDC

Alexander Richter 4 Jan 2010

The Philippines are looking into privatizing geothermal operating assets at Bacon-Manito and the unified Leyte assets, representing about 700 MW of geothermal power capacity.

According to local sources, Philippines’ “State-owned Power Sector Assets and Liabilities Management Corp. (PSALM) said it would privatize at least two power plants and two contracts with third-party generating plants in the first quarter of 2010. Conrad Tolentino, PSALM vice president, said up for sale are the 246-megawatt Angat hydro power plant and 150-megawatt Bacon-Manito geotheral power plants.

PSALM also will bid out the contracted capacities of National Power Corp. (Napocor) with the 1,200-megawatt Ilijan natural gas power plant and the Unified Leyte geothermal complex.

“We’re hoping to take out more assets in the first quarter,” he said.

The Unified Leyte plants—which include the 125-megawatt Upper Mahiao, 232-megawatt Malitbog, 180-megawatt Mahanagdong plants and the 51-megawatt optimization plants—are under contract with Energy Development Corp.

The privatization of these facilities will entail the selection of an independent power producer administrator (IPPA) who will take over the marketing and control of Napocor’s contracted capacities.

PSALM is also looking into the possibility of privatizing the IPPA contract for the 650-megawatt Malaya thermal plant by the first quarter.

“For the IPPAs, we’re targeting Ilijan, Unified Leyte, and we’re studying Malaya,” Tolentino said.

Kepco also operates the Malaya plant under a BOT agreement with the government.

The PSALM official said that the disposal of the said IPPA contracts would help the agency hit the 70-percent privatization threshold for Napocor’s contracted assets.

Once PSALM hits this threshold, open access will begin in the power sector. Under this set up, power plants may offer their output directly to customers, instead of the current practice of distribution utilities sourcing their electricity needs.”

Source: The Manila Times, Manila Standard