PSALM defers sale of Napocor assets

The Power Sector Assets and Liabilities Management Corp. (PSALM) has deferred by another month the sale of the generation assets of the National Power Corp. (Napocor).

PSALM vice president Froilan Tampinco said the bidding for the first power plant (Talomo I ) which was scheduled last Jan. 28 was moved by a month due to "time constraints."

Tampinco said at least three local power firms have expressed interest in bidding for Talomo I.

"We got letters from the bidders expressing that the schedule was rather tight in placing their bid bonds. They want to do more due diligence," Tampinco said, adding that a new schedule for the bidding will not go beyond February.

According to Tampinco, PSALM is planning to auction off at least six power plants in the first quarter. Aside from Talomo, the other plants lined up for sale are Navotas 1, small hydro-power plants in Agusa, Bohol, Lobo and Amlan; and two decommissioned power plants of Napocor – the Manila thermal and Bataan Thermal power facilities.

"These assets need not have transition supply contracts (TSC) before they are sold. That is why they are the first to be privatized. Under the EPIRA (Electric Power Industry Reform Act), we need to get the approval of the Energy Regulatory Commission (ERC) for the TSC to go with the sale of these assets," Tampinco said.

Early this year, the PSALM board approved the final groupings for the sale of the generation assets a total of 35 power facilities.