PSALM sets auction for geothermal complex

The Power Sector Assets and Liabilities Management Corp. (PSALM) will auction off only one geothermal complex this year, a ranking PSALM official said.

PSALM vice president for asset management and electricity trading group Froilan Tampinco said they are currently choosing which geothermal facilities – Tiwi-Makban or Palinpinon that they could bid out at the second half of the year.

"If we will sell Tiwi-Makban this year, we will probably bid out Palinpinon-Tongonan next year and vice-versa," he said.

Of the Napocor power generating assets, geothermal facilities are among those that have been getting good response from investors.

Based on the 2006 privatization blueprint of PSALM, it was supposed to sell both geothermal complexes within this year.

But sources said PSALM wants investors to focus on one geothermal complex.

"This will allow prospective bidders to study their options well," the sources said.

Tampinco earlier admitted that there are still other issues that need to be threshed out before putting the geothermal assets of Napocor in the auction block.

Among these concerns, he said, are the unresolved issues on the steam sales agreements.

PSALM is still firming up the privatization mode for Palinpinon and Tongonan. The192.5-MW Palinpinon geothermal is located in Negros and 112.5-MW Tongonan geothermal is in Leyte.

The asset disposal agency said they are still studying if they would jointly dispose the said two geothermal plants or sell it separately.