PSALM to turn over 150MW BacMan geo power plant to First Gen

The Power Sector Assets and Liabilities Management Corp. (PSALM) will turnover the 150-megawatt (MW) Bacon-Manito (BacMan) geothermal power facilities to Lopez-owned Bac-Man Geothermal Inc. next week. PSALM said it will turnover the BacMan plant to Bac-Man Geothermal — the corporate vehicle of First Gen Corp. — on Sept. 3 after its 40-percent down payment. First Gen acquired the BacMan plants for $28.25 million. PSALM said First Gen has yet to pay $11.3 million during the turnover date. First Gen, however, has not made it clear yet to PSALM if it would pay the remaining amount on the turnover date or on staggered basis. Richard Tantoco, executive vice president of First Gen, said the company plans to avail of PSALM's staple financing or it "may also pay the lump sum using our internal funds." He said First Gen has already decided to rehabilitate the BacMan power plants — which have not been running since last year — to bring it to its operational level. "We're hoping to bring the units back online within 18- to 24-month time frame. Last year, the availability was three percent so it's practically shut down and it's now in the process of planning and executing the rehab," Tantoco said. The BacMan plant package consists of two steam plants located in the provinces of Albay and Sorsogon. First Gen's subsidiary Energy Development Corp., which is the country's largest and the world's second largest geothermal firm, supplies the steam fueling the BacMan facilities. Tantoco said that the plants has no existing transition supply contracts with National Power Corp. and they plan to enter into contracts with customers. "Once we get the plant running, we'll be going into bilaterals with Luzon customers," Tantoco said. —JE/OMG, GMANews.TV