PSALM sees Malaya plant sale this year
Danessa Rivera (The Philippine Star) - August 21, 2017 - 4:00pm

MANILA, Philippines - State-run Power Sector Assets and Liabilities Management Corp. (PSALM) expects the privatization of the 650-megawatt (MW) Malaya Thermal Power Plant (TPP) in Rizal to proceed this year to be able to close the sale in 2018, its top official said.

PSALM officer-in-charge Lourdes Alzona said the asset sale remains on schedule as they are just waiting for the final word on the updated terms of reference to include the conversion provision of the power plant.

“The plant is scheduled for privatization this year. But we are waiting for the final wording of final transaction documents,” she said. “We have an arrangement in the board (to finalize that)  until next month.”

“We can start this year. But in closing the sale, it will slide into next year. The bidding process usually takes three to six months,” she added.

In the revised terms of reference, the winning bidder of the Malaya plant should convert it from diesel to coal or liquefied natural gas (LNG).

“The Department of Energy’s direction on the plant is to make it a baseload plant in order to secure our generating capacity,” Alzona said.

Baseload power plants are power generating facilities that can operate reliably and efficiently, generating electricity 24 hours a day, seven days a week. This can be served by coal, LNG and nuclear plants.

Energy Secretary Alfonso Cusi previously announced the Malaya plant would be rebid in order to accommodate the agency’s request to include the conversion provision in the terms of reference.

“What the DOE wants is to make sure that when we bid it out, there is really energy production….That is 600 MW, we want that to replace 600 MW, because the power plant is counted as an available capacity,” Cusi said.

PSALM, the entity created by the Electric Power Industry Reform Act (EPIRA) to privatize government-owned assets, had set the auction on March 8.  The asset will be sold on an “as is, where is” basis.

The sale has been reset to March 30 and then deferred until further notice to take into consideration the DOE policy to ensure sufficiency of power supply in the Luzon grid.

Currently, the Malaya TPP, which runs on diesel, is designated as a must-run unit (MRU) by the DOE to address supply deficiency when operating power plants in the grid suddenly bog down or become unavailable.

It will operate as an MRU until the DOE finalizes its privatization schedule. 

               

 

 

 

Philstar
Facebook
  • Latest
  • Trending
Latest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

SIGN IN
or sign in with
Read and share the latest news
whenever and wherever you are.
Top Stories
Features the most relevant stories,
exclusive content, analyses and special reports.
As It Happens
Get bite-sized highlights and up-to-date
information as the news breaks.
Latest
View the most recent
stories of the day.
Log-in
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Quisque justo est, auctor vel ullamcorper.
Log-in
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Quisque justo est, auctor vel ullamcorper.
How to follow As It Happens stories
STEP 1
Click the story in the As it Happens section.
How to follow As It Happens stories
STEP 2
Click "Follow Story" for updates on the news.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.
How to follow Author
STEP 1
Click on the author's name in the article.
How to follow Author
STEP 2
Once you click on the author's name, you will be
brought to the Authors page. Click "Follow Author"
to stay updated on the author's works
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.
How to follow Tags
STEP 1
Click on a tag in the article.
How to follow Tags
STEP 2
When you click on a tag, it will take you to the
dedicated tag page where you'll see the article
viewed, along with other stories with that tag.

Click the "follow tag" button to stay updated on
the topic.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.