Green Core Geothermal Inc., a wholly-owned subsidiary of Energy Development Corporation (EDC) of the Lopez group bagged the 192.5-megawatt Palinpinon and 112.5-MW Tongonan geothermal package for $220 million.

It edged out the $$200 million tender posted by Therma Power Visayas Inc. of the Aboitiz Group, the only other bidder in the asset sale.

The third prospective buyer, LV Power, which is a partnership between European firm International Power and ACCRA Law, did not push through with its interest.

This is the third asset package privatized by PSALM in the past two weeks – after the successful auction of the 620-MW Limay thermal facility and the engagement of Independent Power Producer Administrators (IPPAs) for the Sual and Pagbilao coal plants.

The result of the Palinpinon-Tonongan auction is considered a strategic win for the Lopez group, since it is also the supplier of the power plants’ steam fuel.

The Power Sector Assets and Liabilities Management Corporation (PSALM) attempted several times to privatize the facilities; but due to some previous concerns raised by interested parties on the geothermal resource sales contract) (GRSC), the process was deferred several times.

In fact, the original number of prospective bidders reached more than 10 in 2008. When it was re-offered in the auction block this year, seven initially indicated interests. At least five groups reached pre-bid phase, but only two made it to the last stretch.

Apart from the IPPAs, it is not immediately known which power generation assets are next in PSALM’s privatization agenda.

Despite declining numbers being fetched as proceeds from the sale of the assets, PSALM indicated that it is keen at completing its privatization mandate before the end of this year.

The company’s way forward though is seen building up on accomplishments it had in the past weeks as it lines up more IPPA biddings in the coming months.