PSALM sets bid for Angat plant

MANILA, Philippines - Government-run Power Sector Assets and Liabilities Management Corp. (PSALM) will bid out the 246-megawatt (MW) Angat hydro power plant in Norzagaray, Bulacan on April 28.

PSALM vice president for electricity trading Conrad Tolentino said the Angat plant will be the first big-ticket item to be put on the auction block this year.

“This is the first asset that we will bid out for the year,” Tolentino said.

PSALM is a state entity mandated under the Electric Power Industry Reform Act of 2001 to handle the finances and privatization of assets and contracts of the National Power Corp. (Napocor)

In its invitation to bid, the asset manager said interested investors can start the due diligence process by Jan. 12 until one week before the bid submission deadline.

The agency scheduled the pre-bid conference for the power facility, which is being sold on “as is, where is” basis, on Feb. 17.

PSALM has asked the interested parties to submit their respective letters of interest (LOIs) on or before Jan. 27.

“Only interested parties or consortium who have been issued a bidding package will be allowed to participate further in the privatization of the asset,” PSALM said.

The Angat plant, located in San Lorenzo, Norzagaray, Bulacan, began commercial operation on July 1967 with the commissioning of Auxiliary Units 1 and 2. It was later followed by Main Generating Units 1 and 2 on October 1967. Main Units 3 and 4 came into operation in August 1968.

Two groups have earlier expressed keen interest to bid for the Angat power plant.

Statkraft Norfund Power Invest AS (SN Power) of Norway said it is willing to bid for the Angat hydro facility. However, it was not clear if SN Power will bid together with its long-term partner in power businesses in the country, Aboitiz Power Corp. The Norway-based power plant operates the 460-MW Magat and Binga power plants together with Aboitiz Power.

Another interested bidder for the Angat facility is Energy Development Corp., owned by the Lopez Group.