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PSALM to hold Leyte geothermal contract auction in Q1 2015

Tongonan, Leyte Geothermal power plant, Philippines
Alexander Richter 2 Jan 2015

The Power Sector Assets and Liabilities Management (PSALM) Corp. of the Philippines is set to auction the government’s supply contracts for the output of the Unified Leyte Geothermal Power Plants (ULGPP) in the first quarter of 2015.

The Power Sector Assets and Liabilities Management (PSALM) Corp. is set to auction the government’s supply contracts for the output of the Unified Leyte Geothermal Power Plants (ULGPP).

“[Unified Leyte Geothermal Power Plants] UL Bulk  are slated for next year’s privatization plan,” PSALM president and CEO Emmanuel Ledesma Jr. said in a text message. Up for auction are the IPPA or independent power producer administrator contracts.

Ledesma said the bidding for the ULGPP’s bulk output was slated for the first quarter of 2015.

The Energy Development Corp.’s (EDC) subsidiary, Unified Leyte Geothermal Energy Inc. (ULGEI), had won the right to manage and sell so-called bulk output of ULGPP as well as the contract for the smaller “strips” of energy.

ULGEI accepted the deal for the “strips” but declined the contract to manage and trade ULGPP’s bulk energy output.

ULGPP consists of the 125-megawatt Upper Mahiao, 232.5-MW Malitbog, 180-MW Mahanagdong and 51-MW Optimization plants.

Situated in Kananga, the Tongonan geothermal power plant consists of three 37.5-MW units that went into commercial operations in 1983.

EDC’s Leyte Geothermal Production Field supplies the steam used by Unified Leyte and Tongonan I for power generation.

EDC said the steamfield lines remained operable “despite manifest damage” sustained.

Among the energy firms and conglomerates that have expressed interest in the IPPA contract is the Aboitiz Group.

Source: Business Inquirer