"At the moment, we are reconciling differences and the wants of the parties involved. So far, discussions are inactive (with regard to this matter)," Power Sector Assets and Liabilities Management Corp. (PSALM) president Edgardo del Fonso said.
PSALM, under Republic Act 9136 or Electric Power Industry Reform Act (EIRA), will be in charge of disposing of all the assets and liabilities of the state-owned Napocor.
Del Fonso said the two parties should come up with a concrete plan on how the purchase deal would be carried out. "We should develop a plan first that is suitable for both PSALM and PNOC-EDC," he said.
He said since the idea was floated in July last year by PNOC-EDC president Sergio Apostol, both companies have not yet decided on what to do with the proposed buyout of Napocor’s geothermal plants.
"We have not yet come to terms on that sale," Del Fonso said, noting that they are presently busy with the privatization of the National Transmission Co. (Transco) tentatively scheduled on June this year.
Apostol earlier said they are offering to buy the power plants of Napocor either through a negotiated contract or through bidding.
PNOC-EDC is a 100-percent-owned geothermal subsidiary of state-run Philippine National Oil Co. (PNOC).
At present, PNOC-EDC owns and operates four geothermal steamfields in Leyte, Southern Negros, Bicol and North Cotabato with an aggregate capacity of 1,149 MW. This accounts for 60 percent of the country’s total geothermal capacity.
Apostol’s proposal to buy the geothermal units of Napocor, however, has received some negative feedback such as this might run counter to the government’s privatization thrust.
Energy Secretary Vincent S. Perez earlier admitted that PNOC-EDC is also in the auction block but they are prioritizing the Napocor privatization.
Apostol said PNOC-EDC’s value would be enhanced if it increases its geothermal capacity by acquiring Napocor’s power plants.
PNOC-EDC is particularly eyeing the Napocor-owned geothermal power plants namely: the 112 megawatt (MW) Tongonan in Leyte; 194 MW Palinpinon; and 425 MW Tiwi-Makban.
These three geothermal projects are owned by Napocor but are currently being run by PNOC-EDC.
Apostol said PNOC-EDC is awash with cash, accounting for P103 billion of the total P110-billion assets of the PNOC.
He said that under the law, they have to wait for the sale of Napocor to kick off before proceeding with their own privatization plan. – Donnabelle Gatdula