Power investors already inching close to the prescribed market caps reportedly manifested their plea for Power Sector Assets and Liabilities Management Corporation (PSALM) to split the volume of the 1,200-megawatt Ilijan natural gas-fired power facility.

Such was the main concern discussed during the investors’ forum undertaken by PSALM last January 26 for the scheduled appointment of independent power producer administrator (IPPA) for the Ilijan facility.

Under the law, power generators have to comply with the prescribed market limitation of 30 percent per grid and 25 percent on national level.

to accommodate those bidders who are approaching the limitation on generation asset ownership,” prospective“The main issue raised was if PSALM is still considering the splitting of the Ilijan IPPA into two blocks bidders present in the forum have disclosed.

PSALM’s response though was that “the final structure is to have only one IPPA” for the gas facility.

Ilijan IPP operator Korea Electric Power Corporation (Kepco) also attended the investors’ forum. It remains to be seen though if it can reverse the position of its Seoul headquartered principals who are reportedly not keen at giving their go-signal for the Philippine subsidiary to bid.

The Korean firm’s major concerns revolve around the fact that the ‘juicier off-taker markets,’ like Manila Electric Company (Meralco) are already saturated, hence, the option would be to sell the capacity to smaller buyers.

The assumption then is that, the risks will be higher and also entails additional capital outlay.

PSALM’s team leader for IPPA privatization Pablo Anido has apprised media that the IPPA forum will serve “as the company’s venue to gather inputs as well as for targeted bidding participants to verbalize their concerns on this particular leg of the power industry’s privatization line-up.”

He noted that the inputs from interested parties may help PSALM “ensure the successful selection of an IPP administrator for Ilijan.”