The Power Sector Assets and Liabilities Management Corp. (PSALM) has put the bidding for the 650-megawatt (MW) Malaya Thermal Power Plant on hold anew.
Lourdes Alzona, PSALM officer-in-charge, said that the bidding for the Rizal-based asset is “deferred until further notice.”
“Bidding has been moved to have more time for the evaluation of options for the Board, in consideration of the DOE policy to ensure sufficiency of the power supply in the Luzon grid,” Alzona said.
The state-run firm is still waiting for Department of Energy’s instructions regarding the privatization of the MTPP.
The bidding was originally set on March 8 but was moved to March 30 in consideration of DOE’s proposal to convert the facility into a liquefied natural gas (LNG) plant.
Before DOE’s proposal, the Malaya plant was supposed to be sold on an “as-is, where is” basis.
Alzona said that the final transaction document will take the requirement of DOE for the Malaya’s conversion to a baseload LNG plant into consideration.
The conversion of the MTPP will assure reliable power supply in the future and will allow the county to have a cleaner, more efficient and reliable power plant, Energy Secretary Alfonso Cusi said.
PSALM and all government agencies handling government assets should stop the “Real Estate and Mall Mentality”. Pag maka commission ok ma! Now that the government have ratified the Climate Change Agreement (COP21) 70% reduction of greenhouse gas emission by 2030 is now the country’s target. To attain this target we have to go for renewable energy and during the transition LNG shall be required. This is were this Sucat and Malaya plant can come in. These plants can be converted to natural gas (combined cycle gas turbine CCGT) as this will enable renewable energy proceed to high grid penetration. The LNG terminal at Batangas and the gas pipeline from Batangas to Manila projects should proceed as planned so as to be able to supply gas to Sucat and Manila and other industries providing immediately reduction in greenhouse gas emission. This will also provide back-up during Malampaya shutdown which cost the consumers and eventually this will ensure gas supply as Malampaya field decline. Stop this sale of Malaya power plant, review first Climate Change Action Plan and ensure we the owner of this Sucat power plant is not short change in this deal!