Gov’t preps for 232-MW Mindanao coal plant
The Power Sector Assets and Liabilities Management Corp. (Psalm) is planning to privatize the 232-megawatt (MW) Mindanao coal-fired thermal power plant, as it starts seeking consultants to evaluate the asset’s financial value.
In a document dated Sept. 29, the state-run firm is inviting offers for consultancy services for the conduct of a third-party financial valuation for the privatization of the said facility.
The baseload power plant is located within a 55-hectare lot at the Phividec Industrial Estate in Misamis Oriental, one of the largest industrial zones in the country.
Psalm is tasked with the sale and privatization of National Power Corp.’s (Napocor) power generation assets and independent power producer (IPP) contracts.
Among such IPP contracts is that for the Mindanao coal plant’s power purchase agreement (PPA) between Napocor and the consortium of State Investment Trust Inc. and Harbin Power Engineering Co. Ltd.
Napocor’s deal was pursued under a build-operate-transfer agreement covering 25 years, or from Nov. 15, 2006 to Nov. 15, 2031.
The joint venture then established State Power Development Corp., which was later renamed as SPI Power Inc.
SPI, which is now backed by Aboitiz Power Corp. and La Filipina Uy Gongco Corp., currently manages the Mindanao coal plant.
Under PPA, SPI owns, operates and provides the fuel requirement of the plant. Meanwhile, Psalm shall acquire the generated electricity.
Once the agreement lapses, Psalm will have full ownership of the power facility.
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