PSALM to push through with sale of power plants

State-run Power Sector Assets and Liabilities Management Corp. (PSALM) intends to proceed with its privatization activities as scheduled, despite the recent postponement of the bidding for an independent power producer administrator (IPPA) contract.

PSALM president and CEO Emmanuel R. Ledesma said in a phone interview that PSALM will push through with the planned sale of four diesel-fired power barges that can each generate 32 megawatts.

Power barges 101, 102, 103 and 104 are scheduled to be auctioned by December this year, concluding privatization activities for the year.

“Privatization will proceed as scheduled since so far we have no instructions from the PSALM board for any revision in the privatization timeline,” Ledesma said, adding that any changes to the timeline, brought about by the intervention of the lawmakers, will have to be decided by the PSALM board.

This was what happened to the Naga IPPA contract bidding, which was postponed by the PSALM board, after it received a letter from the Joint Congressional Power Commission requesting for the deferment of the auction.

The bidding for the four power barges may also be postponed as there is a pending house resolution by Representative Rufus Rodriguez, who urged PSALM “not to bid out the remaining four power barges and instead make them available to provide power in Mindanao.”

The lawmaker earlier sought for a congressional investigation into the plan of the PSALM to sell these barges, saying that the sale would adversely affect Mindanao power consumers.

However, there is a condition looped in the contract to be signed with the winning bidders, which will mandate them to transfer the barges from Visayas to Mindanao in case of a power shortage.

Mindanao suffered power outages last year due to its heavy reliance on hydropower plants.

Currently, Mindanao sources more than half of its electricity

requirements from hydropower sources, with the Agus-Pulangi hydropower complex providing over 700 megawatts.

At present, three of the power barges are moored in Visayas. One is in Mindanao.