6 groups vie for Angat power plant

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM) expects at least six bidders to show up at the auction of the 246 megawatt (MW) Angat hydropower plant in Norzagaray, Bulacan on April 28.

“Six (groups) are in the running,” PSALM vice president for asset management and electricity trading Conrad Tolentino said.

He said there were at least 12 groups that participated in the pre-bid conference for the power plant but noted that “some have merged and some may have other priorities”.

Among the interested parties include Trans-Asia Oil and Energy Development Corp., San Miguel Corp., Aboitiz Power Corp. and its partner SN Power of Norway, the consortium of First Gen Corp., Ayala Group and Metro Pacific Corp., and DMCI Power Corp.

The PSALM official said they “recognize the unique challenges posed by the Angat hydroelectric power plant to the bidders, considering that the facility is multi-purpose and PSALM is selling only the power component.”

But he expressed confidence this concern will be addressed accordingly amid the power crisis.

“Nevertheless, the current power situation shows how important a hydropower plant can be, so we hope the bidders will submit good offers for the Angat power plant,” he said.

The Angat plants started commercial operations 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. The Main Units 3 and 4 came into operation in August 1968.

The Angat hydro facility operates through the Angat Dam, which supplies the water requirements of Metro Manila, Bulacan and other neighboring provinces.

Recently, PSALM discussed with the prospective bidders a draft protocol for the use and the release of water passing through Angat.

PSALM presented the draft water protocol to the bidders, with representatives from the National Power Corp., National Water Resources Board (NWRB), National Irrigation Administration (NIA), and Metropolitan Waterworks & Sewerage System (MWSS). These agencies, along with PSALM and the buyer of the Angat plant will be the signatories to the protocol.

PSALM stressed that the use of water from the Angat Dam for domestic purposes and irrigation has priority over power generation as stipulated in law and in the bidding provisions for Angat.