Masinloc power plant bidding to proceed
Thursday, November 25, 2004
By BERNARDETTE S. Sto. DOMINGO, Reporter
The government is all geared up to bid out the 600-megawatt Masinloc coal-fired power plant today, the first major asset of the National Power Corp. (Napocor) to be put on the auction block.
Power Sector Assets and Liabilities Management Corp. (PSALM) President Raphael Perpetuo M. Lotilla said he is expecting a "sufficient" number of investors to participate in the bidding.
"We are expecting a sufficient number of bidders. Not the 20 or more that we had before, but we expect quite a good number," he said in an interview. The winning bidder will likely be announced late in the afternoon, he added.
Mr. Lotilla however declined to name the bidders, noting the details have to remain confidential.
Last week, PSALM Vice-President Froilan A. Tampinco said they are expecting at least 10 prospective investors to participate in the much-anticipated bidding. Masinloc is the last Napocor asset to be sold this year.
Mr. Tampinco said four local firms and six foreign companies are likely to vie for Masinloc.
Masinloc is the first large power plant that will be sold as a merchant plant or without a transition supply contract -- a temporary power supply agreement between Napocor and power distributors to assure the prospective buyers of the power plants they would have electricity buyers, when the plants are transferred to them.
Earlier, the Aboitiz group expressed concern over the lack of a contract that will guarantee any winning bidder with electricity buyers.
The Aboitiz group had expressed intent to bid for Masinloc and had formed a consortium with Japanese firm, J. Power, for the plant's possible operations.
Local firms First Gas Power Corp. and Trans-Asia Power Generation Corp. and foreign firms YNN of Australia, Malaysia's YTL Power, Japan's Marubeni Corp., US power firm Mirant Corp. and Korea Electric Power Corp. are also reportedly interested in Masinloc.
Napocor is mandated by law to sell its power plants and other assets and to use the proceeds of the sale to pay debts.
Mr. Tampinco said while only 20% of Napocor's assets were sold this year, the government will push through with its target to auction 70% of the plants by end-2005.
The government has successfully privatized five small power plants since March. It is looking to raise $4 billion to $5 billion from the privatization program.
posted by philpower @ 2:13 PM,
