PSALM attaches 400-M supply contract to Tiwi-Makban sale

MANILA, Philippines- The Power Sector Assets and Liabilities Management Corp. has attached a 400 megawatt power supply contract to the 747-MW Tiwi-MakBan geothermal power complex, to make the asset more palatable to investors. "We are confident of gaining the full support and participation of the prospective investor groups in the upcoming bidding exercise for the Tiwi-Makban," PSALM president Jose Ibazeta said in a statement. The Tiwi-Makban complex is scheduled to be sold June this year. PSALM made the announcement during the second pre-bid conference held last April 17 to provide the bidders another opportunity to discuss the PSC allocation and issues on the geothermal resources sales contract (GRSC). All of the nine investor groups interested in bidding for the Tiwi-MakBan geothermal plant attended the second pre-bid conference. PSALM presented to the bidders the privatization framework covering the transition period until the effectivity of the GRSC. Since PSALM will be selling both steam field assets and generating plants in the complex, Chevron Geothermal Philippines Holdings, Inc. the firm which operates the Tiwi-MakBan geothermal facilities, also made a presentation on the generation and steam production history and the current production and future opportunities on the Tiwi-MakBan geothermal fields. PSALM expects the Tiwi-MakBan sale to bring it closer to the 70 percent privatization target for the generating assets of Napocor in Luzon and the Visayas, a precondition for implementing open access and retail competition in the Philippine electricity industry. - GMANews.TV