The Power Sector Assets and Liabilities Management Corp (PSALM) is waiting for a decision from its board as they prepare for the privatization of two of its power plants.
The firm is seeking the definitive policy on the privatization of the 650-megawatt (MW) Malaya Thermal Power Plant (TPP) and the Mindanao Coal-Fired Power Plant.
PSALM said that its privatization target this year is to cut on operational costs and to augment funds for paying-off its assumed obligations that will benefit the government and consumers.
It added that it has yet to receive a final word from the Department of Energy (DOE) on the natural gas policy which will be included in the plant’s sale terms of reference.
In previous reports, Energy assistant secretary Leonido Pulido said that PSALM can proceed with the privatization of the Malaya plant – which should be converted into an LNG or coal plant – following the signature of Energy Secretary Alfonso Cusi on the Philippine Downstream Natural Gas Regulation (PDNGR).
PSALM is also waiting for the right time to privatize the Mindanao Coal Plant, whose sale was deferred in 2015 as the island was experiencing oversupply of power due to the entry of new power plants.
“Under this circumstance, PSALM deems that the plant may not attract maximum investment,” the firm said.
Meanwhile, the Unified Leyte Geothermal Power Plant (ULGPP) will still be managed by PSALM, including the 40 MW ‘strip of energy’ under the PHINMA Energy Corp.’s administration.
The firm is also keen on the rehab of the Agus-Pulangi Hydroelectric Power plants to extend the service life by 30 more years and increase the plants’ reliability and availability.
Agus-Pulangi has an installed capacity of 982 MW, but can only supply 40 percent to the Mindanao Grid.