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MANILA - The Power Sector Assets and Liabilities Management Corp. plans to privatize the supply contracts of the Casecnan hydroelectric and the Unified Leyte geothermal plants on November.
"Our target is to bid out Unified Leyte within the year and publish invitation to bid for Casecnan, also within the year," said Emmanuel R. Ledesma, Psalm president.
The 140-megawatt Casecnan hydro plant, which is also used to irrigate farm lands, is located in Nueva Ecija. The plant is owned and operated by California Energy Casecnan Water and Energy Co. Inc. under a 25-year build-operate-transfer deal with the National Irrigation Authority.
The Unified Leyte geothermal plants include the 125-megawatt Upper Mahiao plant, 232-megawatt Malitbog and 180-megawatt Mahanagdong plants, and the 51-megawatt Optimization plants. Energy Development Corp. operates the said steam plants in Leyte.
Psalm targets to turn over the facilities to the winning independent power producer administrators by the first quarter next year. IPPAs will then assume ownership of the plants' output and fuel supply.
Ledesma said PSALM is "drafting a structure that will maximize participation of various industry participants" in the upcoming privatization of the power plants.
Under the Electric Power Industry Reform Act of 2001, Psalm is mandated to settle National Power Corp.'s debts through the sale of the latter's power plants and supply contracts - also called power purchase agreements - with third-party plant operators.
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