The Power Sector Assets and Liabilities Management Corp. (PSALM) expects to complete the privatization of all previously-owned National Power Corp. (Napocor) assets by 2017, 16 years after the passage of the Electric Power Industry Reform Act.
Data from the Department of Energy (DOE) show that as of April this year, PSALM has raked in a $3.42 billion from the sale of the state-owned power firm‘s assets since 2001.
These assets sold had a total of 4,362 megawatts (MW) in rated capacity.
In Luzon and Visayas alone, PSALM has privatized 86.5 percent of the islands’ total assets, or 4,157 MW of the 4,807 MW to be privatized.
To date, a number of power generating assets with a total of 2,131 MW are yet to be transferred to private firms, majority of which are located in Mindanao.
Power assets yet to be privatized in Mindanao have a total rated capacity of 1,014 MW, while those in Luzon and Visayas have 868 MW and 249 MW, respectively.
PSALM, however, did not disclose the value of these remaining assets.
DOE data indicated that PSALM eyes to bid by 2017 the Agus and Pulangui hydro power complexes in Mindanao, the last to be privatized.
PSALM would have taken all of 16 years to transfer all the assets, which some would consider as too long.
The DOE said PSALM’s task in the restructuring of the electricity industry is not easy given Napocor’s “outstanding gargantuan liabilities.”
PSALM, under the Electric Power Industry Reform Act or Republic Act 9136, is the agency tasked to privatize the assets of Napocor and is also mandated by law to manage its outstanding liabilities.
“Mindful of the above requirements, PSALM proceeded with the privatization of the generating assets of Napocor on a plant-by-plant basis as this gives PSALM flexibility in structuring the sale of each asset while enhancing the probability of a successful bid,” the DOE said.
The DOE stressed that each plant has its peculiar characteristics, concerns and issues resulting to the long period needed for it to be transferred to investors.
Factors considered by PSALM involve investor’s interest on the plant asset, resolution of outstanding plant-specific issues, the optimization of plant value, and the availability of power supply agreements.
Mercurio, R. (2013 June 13). Napocor asset privatization completed by 2017: PSALM. Malaya. Retrieved from http://www.malaya.com.ph/index.php/business/business-news/33483-napocor-asset-privatization-completed-by-2017-psalm