First Gen to vie for gov’t power assets

MANILA, Philippines—The Lopez-led First Gen Corp. is looking at acquiring the remaining government-owned power assets and contracted capacities to help further cement its foothold in the local power industry.

Francis Giles Puno, president of First Gen, said the company was considering several independent power producer administrator (IPPA) contracts, particularly those for the 165-megawatt Casecnan hydropower facility, 640-MW Unified Leyte geothermal power complex and the 782-MW Caliraya-Botokan-Kalayaan hydropower plants.

Puno also said the company was interested in the hydroelectric power plants in Mindanao. So far, the government has yet to bid out the Agus and Pulangi hydropower complex, which provides more than half of the electricity requirements of Mindanao.

“There are a number of hydroelectric power plants that are up for bid. But we understand the schedule is not also very clear. So in the meantime, in a way, we’re quite fortunate we’ve made investments in additional stakes in Energy Development Corp., and even if the bidding for assets to be privatized is deferred, it’s okay with us,” Puno said.

State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is expected to resume its sale of the remaining government-owned power plants and contracted capacities this year after such plans were put on hold in 2010 for further review and scrutiny.

To date, however, PSALM has yet to announce new bidding schedules.

PSALM president Emmanuel Ledesma Jr. earlier explained that the purpose of halting the sale of the power plants was only to give them time to review the privatization process and see how things could be improved in the future.

He had said then that although they were taking guidance “very closely” from the Department of Energy, the agency would push through with its privatization plans.