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Philippines’ PSALM reworking privatisation plans for IPP contracts, incl. geothermal

Leyte geothermal plant, Philippines (source: video snapshot, CNN Money)
Alexander Richter Alexander Richter 22 Nov 2018

State-run Power Sector Assets and Liabilities Management Corporation (PSALM) in the Philippines is about to hire a consultancy to help on the proposed privatization of IPP contracts, among them the bulk capacity of the Unified Leyte geothermal facility.

As reported from Manila in the Philippines, state-run Power Sector Assets and Liabilities Management Corporation (PSALM) will rework divestment packages for its remaining energy conversation agreements (ECAs) or supply contracts with independent power producers (IPP) together with a third party consultant, so Manila Bulletin.

A request for expressions of interested was posted in October with the opening of the bids now expected for December 4, 2018 for the study on the technical, contractual, legal, commercial and plant-specific issues affecting the IPP contracts.

The consultancy will include proposed privatization packages for the Caliraya-Botocan-Kalayaan (CBK) and Casecnan hydro facilities; the Unified Leyte geothermal plant; Mindanao 1 and 2 geothermal power plants and the Mindanao coal-fired power facility.

The consultant shall “review relevant agreements and applicable laws, conduct consultations with concerned agencies and private entities and conceptualize technical, financial and legal frameworks for the proposed privatization options and structures.”

The power supply contracts of the IPPs originally contracted by the National Power Corporation (and eventually transferred to PSALM) are generally privatized through the appointment of IPP Administrators (IPPAs) that will be trading and selling their respective capacities.

For the Unified Leyte geothermal facility, the proposed privatization of its bulk capacity will likewise be re-evaluated following some hurdles that IPPAs had run into on the privatized 40-megawatt “strip capacities” of the facility.

There was a Request for Expression of Interest – Procurement of consulting services for the conduct of Study on the Privatization Options and Structures for PSALM’s IPP Contracts (Oct. 25, 2018, pdf) that run out on November 6, 2018 for which the opening will be December 4, 2018, as stated above.

Source: Manila Bulletin