Naga power complex auction delayed

ABS-CBN News

Posted at Aug 17 2010 06:47 PM | Updated as of Aug 18 2010 02:50 AM

MANILA, Philippines - Bidding for the Naga power plant complex's contracted capacity has been postponed.

"Yes, (this is due) to bidders' request," Energy Secretary Jose Rene Almendras said.

The auction of the Naga independent power producer administrator (IPPA) contract was set for Wednesday, August 18. Almendras said there is "no new schedule yet" for the bidding.

Power Sector Assets and Liabilities Management Corp. (PSALM) vice president for electricity trading Conrad Tolentino said interested parties have requested more time to study the new terms of the bidding. PSALM is the government agency tasked to manage the privatization of state power assets.

So far, 3 firms have signified keen interest to manage the contracted capacity of the Naga plant. These were Salcon Power Corp., SM Energy Corp. and Pacifica Inc.

The Naga facility consists of the 39-megawatt Cebu Diesel Power Plant 1, and the Cebu 1 and Cebu 2 coal-fired power plants, with total installed capacity of 110 MW.

Sale of the Naga IPPA contract is vital in reaching the 70% privatization threshold that will enable open access in the power industry.

PSALM is the agency mandated by the Electric Power Industry Reform Act of 2001 to privatize at least 70% of National Power Corp.'s power plants and its contracts with third-party power producers.