PSALM readies terms for Masinloc rebidding
Monday, November 13, 2006
By MYRNA M. VELASCO
The Power Sector Assets and Liabilities Management Corporation (PSALM) is currently finetuning terms for the planned re-bidding of the 600-megawatt Masinloc coal-fired facility by first quarter next year.
The company is convinced that it can finally divest the plant successfully this time given fresh interest expressed by investors on the asset.
Masinloc’s sale was aborted in July this year after its first winning bidder, YNN Pacific Holdings, failed to submit the required upfront cash payment that could have warranted turn over of the plant.
"We are studying carefully the terms we will offer so Masinloc would turn out highly attractive to investors," an official of PSALM said.
The lack of supply contract attached to the power generation asset has been pointed to as the main trigger of the failed sale, thus, efforts are being directed on how this dilemma can be resolved for the next round of auction.
Masinloc is one of the plants generating a lot of interest from investors at this point, thus, PSALM said this comes first in the list of assets they are eyeing to divest next year.
Until this December, the only calendared bidding for asset is the 360-MW Magat hydropower facility. The final transaction documents will be released early next month.
The draft transaction document of the Isabela-sited plant was issued last October 19 and prospective bidders were given until November 2 to submit their comments.
The pre-bid conference on the Operations and Maintenance (O&M) Agreement with the National Irrigation Administration (NIA) is slated November 8; wherein investors will be given the floor to raise questions on this particular concern.
"We expect to complete the O&M Agreement for Magat with NIA before the bidding date," said PSALM vice president for asset management and electricity trading group Froilan Tampinco.
The Magat plant is National Power Corporation’s dam facility that combines irrigation, flood control and power supply.
The complex is used primarily for irrigation, with power generation as its secondary function.
The plant uses water from the Magat River to generate electricity.
The plant features a conventional earth-and-rock fill dam, a reservoir with an area covering 117 square kilometers, and a four-story powerhouse that houses the turbines, generators, auxiliaries, control room, maintenance facilities and administrative offices.
posted by philpower @ 6:42 AM,
