PSALM to bid out IPP deals for 3 Napocor power plants

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM), a state entity in-charge of disposing National Power Corp. (Napocor) assets, will bid out contracts for independent power producer administrators (IPPAs) to manage the San Roque, Bakun, and Benguet hydroelectric power plants.

The bidding is set for the third week of December. The original date was Nov. 11.

Sources at PSALM said this will be the last privatization effort of the asset manager for the year.

PSALM said nine investors have expressed interest to join the bidding although it did not identify any of them. It was reported earlier that several groups have been eyeing the IPP packages for these plants. These include: Aboitiz Power Corp., Team Energy, Pacifica, Trans-Asia and First Gen Corp.

According to PSALM, these groups have received their bidding packages and are conducting due diligence.

Conrad S. Tolentino, acting vice president of PSALM’s Asset Management and Electricity Trading, said the interested parties “have to bid for all and can win as many as they can” in the bidding for the three hydro facilities.

“Thus, bidders who will submit an offer for only one or any two of the contracted capacities will be disqualified, he pointed out. Likewise, a joint bid for any of the contracted capacities will not be authorized,” Tolentino said.

PSALM’s rules stipulate that a qualified bidder may be declared the winning bidder for any one or all of the contracted capacities.