The Power Assets and Liabilities Management Corp. (PSALM) said it expects four bidders in the auction for the 150-megawatt (MW) Bacon-Manito geothermal power facilities today.
Conrad Tolentino, PSALM vice president for asset management and electricity trading, said they are also optimistic the geothermal plants would fetch a good price.
“The Bac-Man plants are not in ideal condition although as geothermal assets, they have good potential value. Our expectations have to be weighed against these circumstances,” he said.
Tolentino did not confirm the identities of the prospective bidders but earlier, four power firms have separately signified their respective interest for the Bac-Man geothermal facilities.
These are Therma Power for the Aboitiz Group, Energy Development Corp. of the Lopez Group, San Miguel Energy Corp. and Trans-Asia Oil of the Phinma Group.
The Bac-Man power plants are being supplied by the BacMan geothermal production field in Sorsogon operated by EDC. The geothermal field, estimated at 25,000 hectares, covers the boundary of Legaspi City, Sorsogon City, Bacon District of Sorsogon City and the town of Manito Albay in the Bicol Region.
The Bac-Man I geothermal plant consists of two 55-MW turbines, which were both commissioned in 1993. BacMan II, on the other hand, consists of two 20-MW units called the Cawayan and the Botong. Cawayan, located in Bgy. Basud, was commissioned in 1994, while the Botong unit, commissioned in 1998, is situated in Osiao, Sorsogon City.
Tolentino said this is the last geothermal power plant to be bid out by the government because the remaining will be geothermal contracts that will be offered to the independent power producer administrators (IPPAs).
He said the privatization of Bac-Man will bring the level of privatized assets of the National Power Corp. (Napocor) to 91 percent.
PSALM is pressed to sell all the assets of Napocor to reduce the stranded debts which will eventually be passed on to consumers as a universal charge.
Mandated by the Electric Power Industry Reform Act (EPIRA) to handle the privatization and manage the finances of Napocor, PSALM is also set to put on the auction block the 650-MW contracted capacity of the Malaya thermal power plant in Pililia, Rizal on June 16.
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