Philippines: Agus-Pulangi hydropower plants considered for privatization after rehab

Philippines: Agus-Pulangi hydropower plants considered for privatization
after rehab

POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT CORP. (PSALM) IS IN
DISCUSSION TO REHABILITATE THE CRITICAL 982-MW AGUS-PULANGI HYDROELECTRIC
POWER PLANTS (HEPP) IN 2018 WITH PLANS TO SET THE MINDANAO ASSET UP FOR
PRIVATIZATION IN THE SAME PERIOD.

This move will take advantage of Mindanao's excess power capacity once the
rehabilitation process is achieved within a few months time, PSALM
Officer-in-Charge Lourdes Alzona said.

"We should start in 2018 since the rehabilitation process will take months.
The process will take longer depending on the upgrades needed, which units
will undergo rehab first because we can't do it all at once," she said.

Carlos Dominguez, PSALM Chairman and serving Finance Secretary, echoed the
same sentiments due to the Agus-Pulangi's critical condition, especially
Units 6 and 7, which are the ones needing priority upgrades.

Currently, the hydropower plants supply only 40 percent of its total
nameplate capacity to the Mindanao transmission grid despite being the
cheapest power source in the region with sales at around P2.70 per
kilowatt-hour.

The state-run agency is also considering exploring opportunities for the
asset's privatization in the near future. It has recently partnered with
International Finance Corp. for the plant's privatization plans.

"After the rehab, we can bid out its operations and management or sale of
energy. We have identified a number of options," Alzona said.

On the other hand, the Joint Congressional Power Commission (JCPC) has
ordered PSALM to fast-track the study on the Agus-Pulangi's privatization as
this will be critical in JCPC's recommendation of the Mindanao power asset,
Senator Sherwin Gatchalian said.

Under the Electric Power Industry Reform Act (EPIRA) of 2001, the hydropower
plants should be privatized 10 years after the implementation of the law and
as the overlooking Committee, JCPC is responsible for the directions for the
facilities.

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Link to Original Article:
http://powerphilippines.com/2017/08/22/agus-pulangi-hydro-plants-privatizati
on-rehab/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com