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PSALM sets auction of key contracts

/ 01:30 AM December 30, 2014

The Power Sector Assets and Liabilities Management (PSALM) Corp. is set to auction the government’s supply contracts for the output of the Unified Leyte Geothermal Power Plants (ULGPP) and the 210-megawatt (MW) Mindanao coal-fired plant.

“UL Bulk and Mindanao Coal are slated for next year’s privatization plan,” PSALM president and CEO Emmanuel Ledesma Jr. said in a text message. Up for auction are the IPPA or independent power producer administrator contracts.

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Ledesma said the bidding for the ULGPP’s bulk output was slated for the first quarter of 2015 and the auction for the Mindanao coal plant output was slated for the second quarter.

The Energy Development Corp.’s (EDC) subsidiary, Unified Leyte Geothermal Energy Inc. (ULGEI), had won the right to manage and sell so-called bulk output of ULGPP as well as the contract for the smaller “strips” of energy.

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ULGEI accepted the deal for the “strips” but declined the contract to manage and trade ULGPP’s bulk energy output.

ULGPP consists of the 125-megawatt Upper Mahiao, 232.5-MW Malitbog, 180-MW Mahanagdong and 51-MW Optimization plants.

Situated in Kananga, the Tongonan geothermal power plant consists of three 37.5-MW units that went into commercial operations in 1983.

EDC’s Leyte Geothermal Production Field supplies the steam used by Unified Leyte and Tongonan I for power generation.

EDC said the steamfield lines remained operable “despite manifest damage” sustained.

The Mindanao coal-fired plant comprises two units, each with a generating capacity of 105 MW, and is operated by private firm STEAG State Power Inc. (SPI).

The power plant, located at the Phividec Industrial Estate in Villanueva, Misamis Oriental, is a major facility and accounts for about 20 percent of Mindanao’s total power supply.

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SPI’s power plant is currently Mindanao’s biggest in terms of unit capacity. Since the start of its commercial operations in November 2006, it has delivered more than 10 billion kWh of electricity to the Mindanao grid, representing about a fifth of the island’s total electricity supply.

Among the energy firms and conglomerates that have expressed interest in the IPPA contract is the Aboitiz Group.

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TAGS: Business, coal-fired plant, Geothermal, power sector, PSALM, supply contracts
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