IBAZETA

The Power Sector Assets and Liabilities Management Corporation (PSALM) expects the Calaca and Limay power plants to be sold within the year.

PSALM president Jose Ibazeta said yesterday that they would start selling Calaca before the first half of the year through a negotiated bidding, adding that they have received at least seven letters of interest for Calaca.

It would be recalled that Calaca was auctioned off and won by Suez Energy which had later decided not to pursue the purchase due to some undisclosed concerns.

But Ibazeta said interest for Calaca is still high and noted that most of these prospective bidders are even first-time investors in the Philippines.

“There are new ones. Both local and foreign firms have signified interest to participate in the Calaca bidding. Some are investors from Europe, US, Thailand and China,” he said.

If PSALM is able to sell these two power plants this year, he said the privatization level would be placed at 85-88 percent from the current 57 percent.

According to Ibazeta, they are still optimistic that they could reach or even surpass the threshold of 70 percent privatization level which will pave the way for the open access wherein customers will have a choice where to source their power requirement thus allowing more competition in the market.

“Despite the financial crisis that the world economies are currently experiencing, we in the Philippines remain optimistic that more investors will participate in the upcoming bidding exercises of the government’s remaining power assets,” he said.

Ibazeta said they hope to start the open access as soon as they reach the prescribed level under the Electric Power Industry Reform Act (EPIRA).

“In performing our expected responsibilities, we must roll up our sleeves and exert a little more time and effort to complete our privatization targets for this year.

In so doing, we will finally enter the much-anticipated era of open access and retail competition in the power sector,” he said.