PSALM defers idle thermal plant’s sale
Monday, April 02, 2007
By MYRNA M. VELASCO
At nick of time, the Power Sector Assets and Liabilities Management Corporation (PSALM) has decided to delay the divestment of its first scheduled sale of decommissioned power facility from March 30 to the last quarter of this year.
PSALM was supposed to bid last week the Bataan thermal facility but company officials noted they have seen the need to do another review of the sale plan for the idled power assets.
The company, in a press statement, said "the structure of, and process for this type of asset sale is being reviewed to ensure better success at disposing them."
While at this, PSALM officials stressed they will now re-direct efforts in ensuring a successful privatization of the 600-megawatt Calaca coal-fired by the second semester of this year.
With pronouncements of PSALM President Jose C. Ibazeta that there would be no more failed biddings during his tenure, the company is apparently re-calculating its moves in the sale of the National Power Corporation (NPC) assets so they won’t fail anew on their targets.
According to PSALM vice president for asset management and electricity trading Froilan A. Tampinco, the company is now "making the necessary preparations for the conduct of the bidding exercises for the Calaca plant," noting that they are hoping to achieve success this time.
He stressed that interested investors are already undertaking due diligence on the asset. On PSALM’s side, they are accelerating discussions with NPC for supply contracts that will be attached the privatization package.
Another major concern PSALM has been sorting out on the Calaca plant’s divestment is the reserve price since this has been one of the major factors that hobbled the first two rounds of its auction in June 2005 and April last year.
The Calaca facility will be the second big-ticket asset divestment scheduled this year; after the targeted bidding for the 600megawatt Masinloc coalfired power plant on July 26 this year.
"While this will be the third round of bidding for the Calaca plant, we know that investors remain keen on acquiring this particular asset," Tampinco said; though he is cautious enough in adding that apprehensions are still hurled "primarily due to the lack or insufficiency of power supply allocations."
Despite the law allowing potential negotiated deal for Calaca since this is already the third attempt to have it privatized, the government decided against it and instead plans to pursue another round of competitive bidding in the spirit of invoking fairness and transparency in the process.
posted by philpower @ 9:17 AM,
