WITH the earlier valuation of the independent power  producer (IPP) contracts, government-run Power Sector Assets and Liabilities Management Corp. (PSALM) projects to generate more than $13 billion in proceeds from the privatization of the said contracts.

PSALM president Jose C. Ibazeta said all the contracts have values. “But if we compute everything based on the nominal value, the contracts could amount to at least $13 billion,” he added.

Ibazeta noted that PSALM is also looking at finalizing which option they would take in bidding out the IPP contracts and the selection of IPP administrators (IPPAs).

Ibazeta added that he believes that the IPPA bidding should be a successful one in order to result in lower power rates.

Ibazeta further noted that the universal charge to be passed on to consumers could also be lowered should PSALM generate much higher proceeds from privatizing the IPP contracts.

He also said PSALM has yet to determine if it will sell the IPP contracts in bulk or in an individual basis as proposed by the industry players.

“We have conducted several investors’ forum to determine what industry stakeholders would prefer on the sale of IPP contracts. Industry stakeholders’ inputs are important in deciding which privatization scheme to use for the IPP contracts,” he said.

Philippine Independent Power Producers Association (Pippa) president Ernesto B. Pantangco earlier said that its members want to privatize the Napocor-IPP contracts on an individual basis instead of selling the IPP contracts in bulk or in three packages at 2,000 megawatt (MW) per package or portfolio.

Citing the rule of thumb, Pantangco said PSALM could generate $4 billion per portfolio.

PSALM plans to group the IPP contracts in order to package less attractive IPP contracts with the attractive ones. Pippa also suggested that PSALM should look into transferring the ownership to IPPAs at the end of the build, operate and transfer contract period.

Under the Electric Power Industry Reform Act, PSALM is required to appoint IPP administrators to manage and control Napocor-IPP plants until such time that the contracts have expired.

Included in the list of IPPs to be transferred to the IPPAs are 1,200-MW Ilijan natural gas-combined cycle owned and operated by Korean Electric Co. (Kepco)-Ilijan Corp. located in Batangas; Pangasinan-based 1,000-MW Sual coal units 1 and 2 operated by Mirant Power Corp. Another plant operated by Mirant, 700-MW Pagbilao coal units 1 and 2, will be transferred to the IPPA.

The 215-MW Bauang diesel plant of Bauang Power Corp. in Zambales is also part of the IPPA list. Enron Power Corp.’s 116-MW Subic diesel plant and Casecnan Multipurpose Hydro of the National Irrigation Administration in Nueva Ecija are also included in the said list. Two more hydro power facilities, 340-MW San Roque Multipurpose Hydro of Marubeni/Sithe in Pangasinan and 70-MW Bakun Hydro of Aboitiz Equity Ventures in Ilocos Sur will also be transferred to the management of the IPPA.

The only geothermal facility that will be handled by the IPPA will be the PNOC-Energy Development Corp.’s 440-MW Leyte B geothermal power plants.

THE Consunji-led DMCI Holdings Inc. is selling idle assets to fund its equity participation in the ambitious Tarlac-La Union Expressway Project (TLUTE).

WITH the earlier valuation of the independent power  producer (IPP) contracts, government-run Power Sector Assets and Liabilities Management Corp. (PSALM) projects to generate more than $13 billion in proceeds from the privatization of the said contracts.

LISTED Oriental Peninsula Resources Group Inc. reiterated that it did not violate any rule and that their mineral production sharing agreement (MPSA) for nickel mining in Palawan was rightfully secured after obtaining the consent of indigenous communities through Platinum Group Metals Corp. (PGMC) and Olympic Mines and Development Corp. (OMDC).

IN COMPLYING with the Biofuels Act of 2006, Petron Corp., one of the country’s refiners, might have to tap foreign ethanol suppliers in the meantime that its supposed supplier will have the completion of its ethanol processing plant delayed.

LANDCO Pacific Corp. will not contest the suspension of the development permits of its huge 200-hectare development in the hills of Cebu City, after getting the blame for a flood downhill which displaced some 10 families last week.

DAVAO CITY—Flag carrier Philippine Airlines (PAL) estimates to fly 1 million passengers in the next 12 months of operation of the new missionary routes it opened using its newly acquired turboprop aircraft.

AT CURRENT rates of food production, the increase in population will outstrip hikes in food production by 2050, according to the United Nations Population Fund (UNFPA).