The Power Sector Assets and Liabilities Management (PSALM) is reportedly seeking policy clarity on the coverage of the election ban, as this may also affect the privatization program for the power industry – with the bidding of some assets and contracts spilling over to next year.

“It has to be clarified (by Malacañang and the Commission and Elections) if the privatization program may be affected because there are biddings lined up until the first half of next year,” a highly-placed government official noted.

In fact, PSALM is targeting to privatize bulk of the National Power Corporation’s supply contracts next year, via the process of engaging Independent Power Producer Administrators or IPPAs.
The 70-percent contracts privatization threshold is based on undisturbed bidding timeframe by the first half of next year.

For this year, PSALM has just scheduled two IPP auctions – covering contracted capacities from coal and hydropower plants.
By 2010, the power generating assets due on the auction block would include the 246-megawatt Angat hydropower facility. The others will be the 150-MW Bacon-Manito geothermal power plant; 235.2-MW Bauang oil-fired power plant; 310-MW Navotas gas turbine power plant and the 114-MW Iligan 1 and 2 diesel power plants.

New attempts are also set for the sale of the decommissioned 850-MW Sucat power plant. The government previously planned getting this asset converted into a natural gas-fired power facility and this shall be set as a condition to the buyer under the sale agreement.

The converted Sucat power facility is lined up to become the anchor load for the proposed high pressure gas pipeline from Batangas to Manila. The pipeline project has been encountering delays due to the absence of a feasible market that will give its construction commercial justification.

Around 2011 until 2013, privatization initiatives will continue for the 350-MW Malaya oil-fired power plant; 982.1-MW Agus and Pulangi hydro- power complexes; 110-MW Cebu coal 1 and 2; 39-MW Cebu diesel 1 power plant as well as the power barges.

As far as privatization of IPP contracts is concerned, PSALM primarily hinges its bidding schedules based on feedback from investors.