PSALM to resolve sale scheme for 1,200-megawatt Ilijan power plant

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM) is set to resolve the issue on the sale scheme to be used for the appointment of the Independent Power Producer Administrator (IPPA) for the contracted capacity of the 1,200-megawatt Ilijan Combined Cycle Power Plant.

PSALM will undergo a forum on Tuesday, Jan. 26, 2010, at the PSALM Filipinas Hall, 6th Floor Bankmer Bldg., 6756 Ayala Avenue, Makati City. The forum will be held from 10 a.m. to 12 noon.

PSALM team leader for the IPPA privatization Pablo Anido said the objective of the forum is to present to prospective bidders and investors the technical details and operational experience regarding the plant, and the commercial approach and legal structure that PSALM is considering for the tendering of the IPPA.

“We expect that inputs from interested parties will help ensure the successful selection of an IPP administrator for Ilijan,” Anido said.

The asset manager will bid out the Ilijan natural gas power plant on April 16.

PSALM, an entity created under the Electric Power Industry Reform Act (EPIRA) of 2001, has already issued the invitation to bid (ITBs) the other day.

If the bidding of Ilijan contract will be successful, PSALM will be able to hurdle the 70 percent privatization threshold for independent power producer (IPP) contracts in the Luzon and Visayas grids this year.

The ITB for IPP (independent power producer) Administrator (IPPA) to manage the Ilijan capacity, which signals the start of PSALM’s sale process for the Southern Luzon-based power asset, will be published for three consecutive days in local newspapers.