PSALM to bid out Unified Leyte power contracts in Q4

The Power Sector Assets and Liabilities Management Corp. is set to bid out the contracts for 640-megawatt Unified Leyte geothermal power project in the fourth quarter of the year, an official of the state-run company said Tuesday.

"The privatization structure of Unified Leyte is still subject to the PSALM board's approval," said PSALM president Emmanuel Ledesma Jr.

Energy Secretary Carlos Jericho Petilla earlier said that PSALM and the Philippine Electricity Market Corp. were working on the privatization structure for the Unified Leyte contracts.

The earlier planned privatization of the Unified Leyte contracts fell through last September as various stakeholders raised concerns about the move and the Department of Energy set another review on the proposed privatization structure.

The DoE has been looking into the option of offering contracts for Unified Leyte in smaller-sized capacities, which would entail dividing the contracted capacities into one 240-MW contract and the rest in strips of one megawatt per contract.

According to the initial rules, the one that acquires the 240-MW contract will be the one to trade the one-megawatt contracts at the Wholesale Electricity Spot Market, though that may not happen, said Petilla. "We may have to put in a certain condition," he said.

Petilla also earlier noted that with Retail Competition and Open Access (RCOA), distribution utilities and industries can “definitely” bid now.

Among the parties who earlier expressed interest in bidding for the Unified Leyte contracts are First Gen Corp., the Ayala Group, and Aboitiz Power Corp. — BM, GMA News