PSALM divides Napocor assets into 4 groups

The Power Sector Assets and Liabilities Management Corp. (PSALM) has divided into four groups the generation assets of the National Power Corp. (Napocor) in preparation for their sale in the second half of 2002.

The government expects to raise $5 billion to $7 billion from the privatization of Napocor’s generation companies or assets (gencos).

"We have divided them (gencos) based on results of various consultations with prospective bidders," PSALM president Edgardo Del Fonso said.

The first group is the Luzon Calaca group with total generating capacity of 1,355 MW. The group includes Calaca (coal), 600 MW; Pinamucan (Bunker C), 105 MW; Malaya (Bunker C).

The second group – Luzon Masinloc – is composed of Masinloc (Coal) and Bataan sites with a combined capacity of 600 MW.

The third is the Luzon Magat group which has a total capacity of 382 MW (hydro) and which will includes Magat (360 MW) and Benguet (22 MW).

Luzon Angat, the fourth genco group has a total capacity of 532 MW. It is composed of Angat (245 MW); Pantabangan (100 MW); Masiway (12 MW) and Binga (100 MW); and Ambuklao (75 MW).

Aside from these groups, there two "mixed groups" which include the geothermal and other power plants. For the individual geothermal with total capacity of 1,141 MW, it will include Bacman (150 MW); Panlinpinon (193 MW); Tiwi (685 MW) and Tongonan (113).

Another mixed group will include 13 small hydro, diesel, and fuel oil power plants.

Del Fonso said the final group will be released together with the implementing rules and regulations, wholesale electricity spot marekt rule, transmission charges and investors’ feedback.

The groupings, he said, were based on several guidelines such as it should optimize value; asset grouping should balance competition and proceeds; it should adhere to open and transparent public bidding and each geothermal complex should be sold as package (steamfield assets and generating plants).

PSALM also considered clustering the gencos based on fuel type, location and useful life.

By fuel type, the country’s energy mix is dominated by coal with 31.3 percent followed by geothermal power plants with 29.7 percent; hydroelectric power plant (23.4 percent); bunker fule oil (10.4 percent) and diesel (5.2 percent).

By location, most of the plants are in Luzon (86.7 percent of the total) while the remaining plants are situated in the Visayas with 13.2 percent and Mindanao (0.1 percent).

By useful life, most of the power plants have a 50-year lifespan; 29.9 percent have 10-20 years; 11.7 percent (five years) and 3.5 percent (five to 10 years).

With the passage of the Republic Act 9136 or Electric Power Industry Reform Act (EPIRA), the sale of the Napocor’s transmission and generation assets is set 18 months after the signing of the power law.

Based on the plan, the privatization of transmission assets would push through in the first quarter of 2002 to be followed by the sale of the generatin assets in the second and third quarter of next year.