The Power Sector Assets and Liabilities Management Corp. (PSALM) is pushing through with the bidding of two power plants despite the worsening armed conflict between the military and the Moro Islamic Liberation Front (MILF) in Mindanao.
PSALM vice president Froilan Tampinco told reporters the asset sale will not be affected by the ongoing war in the area.
“As far as the sale process for the Iligan I and II diesel power plants is concerned, we are proceeding with it,” he said.
Situated in the locality of Mapalad, Dalipuga in Iligan City, approximately 74 kilometers southwest of Cagayan de Oro City, the IDPP 1&2 complex runs on Bunker C and/or diesel fuel types for its start-up and shutdown operations. Both units were commissioned in 1993.
He said the operations of the power plants have been affected by the hostilities in the area.
The bidding for the Iligan power plants may be pushed back due to this problem as prospective bidders may not be able to fully conduct their respective due diligence activities in the power facilities, industry sources said.
At least three investor groups have already signified interest to bid for the 114-megawatt (MW) Iligan I & II diesel power plant complex scheduled on October 15.
PSALM earlier confirmed that the three prospective bidders are currently conducting their respective due diligence to assess and appraise the Mindanao-based power assets.
The success of the Iligan power plants’ privatization will help ease the power shortage in the province.
“While the sale of IDPP 1&2 will not form part of the 70 percent privatization threshold required by the Electric Power Industry Reform Act as one of the preconditions for the implementation of open access and retail competition, PSALM stressed the importance of the bidding, especially for Mindanao, which is experiencing a tightening power supply,” PSALM president Jose Ibazeta earlier said.
Open access will allow consumers the choice to source their own power requirements.
By October this year, PSALM expects to hit the 70 percent privatization level. With the recent successful bidding of the Tiwi-Makban geothermal complex, PSALM said they have already reached a 68.8-percent privatization level.