News

Sale of geothermal contracts for Mt. Apo plants scheduled for Q3

Sale of geothermal contracts for Mt. Apo plants scheduled for Q3 Steam pipes at Mount Apo, Mindanao Philippines (source: flickr/ penmanila)
Alexander Richter 31 Jan 2014

The Philippines' Power Sector Assets and Liabilities Management Corp has scheduled the sale of government's contracted output of around 110 MW in total of the two Mt. Apo geothermal plants in Mindanao.

The Philippines’ Power Sector Assets and Liabilities Management Corp (PSALM) has scheduled the sale of government’s contracted output of the Mt. Apo geothermal plants in Mindanao.

Emmanuel R. Ledesma, Jr., Psalm president and chief executive officer, said the agency’s board has cleared the selection and appointment of the independent power producer administrator (IPPA) for the Mt. Apo 1 and 2 geothermal plants.

“During the meeting of the Psalm board of directors on January 29 ,2014, we have been given the authority to commence the sale process for the Mt. Apo IPPA selection, and we plan to conduct the bidding in the third quarter of this year,” he said.

As to the structure of the sale, “Psalm will adopt the same legal and commercial structures that were used in the selection and appointment of IPPA for the Bulk Energy of Unified Leyte Geothermal Power Plant, which PSALM bid out in 2013,” Ledesma said.

The Mt. Apo IPPA will manage two government contracts with the Mt. Apo 1 and 2 geothermal power plants with contracted energies of 390 gigawatt-hours (GWh) and 398 GWh per year, respectively.

The Mt. Apo 1 and 2 geothermal plants, each with a rated capacity of 54.24 megawatts, are located in Kidapawan City, North Cotabato.

Operated by Lopez-owned Energy Development Corp, the power plants were commissioned on February 15, 1997 (Mt. Apo 1) and June 17, 1999 (Mt. Apo 2) under a build, operate, and own contract scheme.

The cooperation period for both plants is 25 years, and the same will expire on February 15, 2022 and June 17, 2024, respectively, for Mt. Apo 1 and 2.

Psalm is the agency tasked by law to privatize National Power Corp’s power plants and contracted capacities in order to settle the latter’s debts.”

Source: Interaksyon