PNOC may form group to bid for Napocor assets

State-owned Philippine National Oil Co. (PNOC) is exploring the possibility of forming a consortium with foreign and local power firms to bid for the generating assets of the National Power Corp. (Napocor).

"We are trying to put together a group/consortium that will bid for the privatization of the power plants of Napocor particularly those that will be converted into natural gas-fired power facilities," PNOC president Thelmo Cunanan said, in an interview, last week.

Cunanan said PNOC is eyeing to participate in the bidding of the 620-megawatt (MW) Limay, 850-MW Sucat and 225-MW Bataan Thermal power plants. These three oil-fired facilities are expected to be converted into gas-run power plants.

The PNOC official said they would probably take minority stake of about 30 to 35 percent in the proposed consortium.

"We are willing to take minority position because this is a multi-company consortium. It may be composed of four to five members. But there will be no clear majority in the group," he said.

According to Cunanan, PNOC wants to take the lead in bidding for these three plants but also intends to maximize private sector participation.

Cunanan said they want to take advantage of the prospects of these said plants since these are part of the solutions to address the power requirement of the country in the coming years.

"Under Power Sector Assets and Liabilities Management Corp. (PSALM)’s plan, one possible action is to convert these power plants into natural gas facilities to address projected power requirement of the country," he said.

Based on the revised plan of PSALM, it has included the Sucat, Limay and Bataan in the first batch of power facilities that will be sold this year and early next year. – Donnabelle Gatdula