Government raises $10.6 billion from privatization of Napocor assets, contracts

MANILA, Philippines - The National Government has raised $10.6 billion from the privatization of the National Power Corp. (Napocor) assets and contracts.

In an update on the Electric Power Industry Reform Act (EPIRA) or RA 9136, the $10.6 billion proceeds as of end-April this year excludes the amount raised from the privatization of sub-transmission assets (STAs).

The $10.6 billion included sale proceeds from generating plants, ($3.39 billion); turned-over independent power producers (IPPs), ($44.51 million); decommissioned plants, ($7.31 million); National Transmission Corp. (TransCo) concession, ($3.95 billion); and transfer of Napocor-IPP contracts to IPP administrators ($3.23 billion).

The report noted that the period Nov. 2009 to April 2010 had seen significant accomplishments in the government’s privatization efforts both in the generating capacities and the transfer of the management and control of energy outputs under contract with Napocor.

“The sale of Angat HEPP marked 91.8 percent privatization level of NPC generation assets in the Luzon and Visayas grids. Also, with the success of the Ilijan IPPA bidding, the government was able to turn-over the management and control of nearly two-thirds of energy outputs under contract with Napocor,” the report said.

Two significant operating power plants that were bidded out for the report period include: 218-MW Angat hydroelectric power plant (HEPP) and the 150-MW BacMan geothermal power plant1 (GPP). 

As of May 2010, the government was able to privatize 25 operating/generating power facilities where 20 comprised the Joint Congressional Power Commission (JCPC) approved initial list of plants for privatization with an aggregate rated capacity of 3,468.23 MW accounting for 91.8 percent of the total 3,778.23 MW total rated capacity of NPC generating assets in the Luzon and Visayas grids. 

Following the successful transfer of the management and control of the Napocor-contracted outputs in Sual and Pagbilao, the administrators for the contracted energy output for the San Roque, Bakun, and Benguet mini hydroelectric power plants and Ilijan Combined Cycle Power Plant were selected by PSALM.

The Strategic Power Devt. Corp (SPDC) which offered $450 million will administer the contracted capacity of the 345 MW San Roque multipurpose HEPP.

On the other hand, Amlan Power Holdings Corp. (APHC) won the 70-MW Bakun and 30-MW Benguet contracted capacities with an offer price of $145 million.