Tag Archives: National Power Corporation

PSALM selling Iligan power plant assets

BusinessWorld Online
August 8, 2013

THE POWER Sector Assets and Liabilities Management Corp. (PSALM) is seeking offers to purchase various disposable assets, worth P32 million, of the 98-megawatt (MW) Iligan diesel power plant.

In a notice published yesterday, PSALM’s Bids and Awards Committee said it will dispose unserviceable assets of the plant in Lanao del Norte — which was already turned over to Mapalad Power Corp. in the first quarter of this year.

Specifically, PSALM is seeking bids for a fuel tank and associated pipeline, as well as the stock fuel of the power plant.

The remaining fuel consists of 2.27 million liters of industrial fuel oil, 73,873 liters of industrial diesel oil, and 7,435 liters of engine lubricating oil.
BusinessWorld Online
August 8, 2013

PSALM has set a minimum bid price of P32 million for the assets, and interested parties should pay a non-refundable fee of P10,000 for the bidding documents.

The state firm has scheduled the auction for Sept. 4, with a pre-bid conference on Aug. 23.

PSALM was formed under Republic Act 9136 or the Electric Power Industry Reform Act of 2001 to assume ownership of and manage all of National Power Corp.’s assets, liabilities, contracts with independent power producers, real estate and other disposable assets. — Claire-Anne Marie C. Feliciano

Swiss challenge for Iligan plant held up

BusinessWorld Online
October 23, 2011

CAGAYAN DE ORO — The Iligan City council has deferred the Swiss challenge for the 103-megawatt Iligan diesel-fired plant complex as it awaits the Commission on Audit’s recommended updated ceiling price for the power asset.

Conal Holdings Corp., under the Alcantara Group, last year submitted an unsolicited offer of P300 million for the two-plant complex.

While the period for the Swiss challenge was originally scheduled to end on Oct. 13, the city council decided last week to hold off the exercise until the Commission on Audit (CoA) recommended a ceiling price, Councilor Moises G. Dalisay, Jr., chairman of the ad hoc committee on the power plants’ disposal, said in a telephone interview last weekend.

Norberto J. Oller, vice-president of the Lanao Power Consumers Federation, noted in a separate phone interview that previous appraisals placed the power complex’s value at P2.1 billion (CoA, in a 2007 report), P1.9 billion (National Power Corp.) and P1.8 billion (Lanao Consumers Federation).

The City of Iligan acquired the 7.9-hectare power plant complex under a compromise agreement with the Power Sector Assets and Liabilities Management Corp., following the latter’s failure to settle real estate tax liabilities for the asset.

The $110-million power plant complex was commissioned in 1993 as a joint build-operate-transfer (BOT) undertaking of the Alcantara Group and Tomen Corp. of Japan, called Northern Mindanao Power Corp. (NMPC).

Previously designated as NMPC-1 (60.9 megawatts) and NMPC-2 (42 megawatts), the plants were renamed as Iligan Diesel Power Plant 1 and 2 when ownership of the two units was turned over to the National Power Corp. on July 31, 2003 and on Feb. 9, 2006, respectively, after the BOT contract expired.

Three investor groups subsequently expressed interest to bid for the power plant complex and conducted due diligence on the units.

However, only Conal Holdings and Energy Developer Co. Ltd. of Seoul, South Korea — a company involved in renewable energy generation — were eventually deemed qualified by the city’s bids and awards committee to vie for ownership of the plant. — M. D. Baños

Turks, Koreans eye Iligan power plant

BusinessWorld Online
May 18, 2011

CAGAYAN DE ORO CITY — Turkish and Korean investors have expressed interest in acquiring the 114-megawatt Iligan Diesel Power Plant 1 & 2 in Dalipuga, Iligan City. Some members of the 30-man Turkish mission that visited this city last week expressed interest in the plant now owned by the city government of Iligan.

The 7.9-hectare power complex was acquired by Iligan City under a compromise agreement with the Power Sector Assets and Liabilities Management Corp. following its failure to settle real estate taxes with the local government.

Earlier, the Energy Developer Co. Ltd. of Seoul, South Korea, a company involved in renewable energy generation, contracted Cagayan de Oro-based MERGS Technologies, Inc. to conduct due diligence and feasibility study on the plant following a visit to Iligan Mayor Lawrence Ll. Cruz.

Formerly known as the Northern Mindanao Power Corp. (NMPC), the $110-million facility was the first fast-tracked build-operate-transfer power project that is controlled by a local firm. It was commissioned in 1993 as an offshoot of the independent power producers initiative of the Ramos administration and is a joint undertaking of the Alcantara Group and Tomen Corp. of Japan.

Previously designated as NMPC-1 and NMPC-2, the plants were renamed as the Iligan Diesel Power Plant 1 and 2 when the two units were turned over to the National Power Corp. — Michael D. Baños

No brownouts this summer, says DOE

BusinessWeek Mindanao
March 14, 2011

IN light of imminent power shortages seen in Mindanao, the Department of Energy is looking into adopting measures that will address the problem especially in the coming summer months.

During a forum in Cagayan de Oro last week, Energy Secretary Jose Rene Almendras said the power situation in Mindanao for the coming summer months is a cause for concern but is not critical.

Despite fears of a repeat of last summer’s rotating brownouts, Almendras said there is only a two week “critical” period when the Mindanao grid’s power reserves would be relatively thinner due to scheduled maintenance works on its major hydroelectric power plants which supply 55 percent of the island’s power mix.

Almendras said the Pulangi IV hydroelectric power plant in Bukidnon was originally scheduled to undergo a month long rehab this month but this is expected to be considerably shortened given the latest estimates of the National Power Corporation (Napocor).

“Even if only Pulangi is on maintenance, there should be no brownouts,” Almendras said. “The bigger challenge would be in May when the Agus hydroelectric plants are scheduled for rehab during the third week of May because our reserves would be much lower.”

Earlier, the DOE said that in addition to the supply augmentation program consisting of the transfer of power barges to the southern region, sale of electricity by big industrial firms with excess capacities and through voluntary curtailment, the Grid Operation Management Protocol (GOMP) will be implemented rigorously to ensure power supply reliability during unexpected generation plant shutdowns.

The DOE encourages consumers from all sectors to reduce electricity demand especially during peak hours by turning off equipment and appliance when not in use to avoid any power cuts.

Almendras said for whole month of January 2011, the Mindanao grid experienced only a one day Yellow Alert when reserves were lower relative to demand.

“The reason why we don’t have brownouts in 2011 is weather has been great,” he added.

However, Almendras said although Mindanao’s required reserves are 32 percent, the actual figures so far have been way below that.

“If one plant goes down or there is a surge in demand, system can’t respond,” he said. “You can never be 100 percent sure with power in any setting. That’s why we need every single megawatt of non-hydro generating capacity. Assuming walang nasisira we’re okay.”

In preparation for the expected two weeks Yellow Alert when the Agus and Pulangi plants will be down for maintenance, Almendras said the ERC is extending the ancillary service contracts of the National Grid Corporation of the Philippines’ (NGCP) with Therma Marine Inc.’s M1 and M2 power barges to July 7, 2011.

“NGCP will have 100 MW available under the ASPA with another 82 MW firmed up in bilateral agreements with various power coops,” said Jovy Batiquin, TMI Chief Operating Officer said. “The balance of 18MW is available to NGCP anytime it needs it.”

As a further contingency, DOE also plans to move three of its power barges from Panay once the power situation in that island normalizes with the operation of new coal-fired power plants.

PB 101 has been tentatively scheduled for transfer to Mindanao by the fourth week of February, PB 102 by the third week of March and PB 103 by the first week of May.

Almendras assured forum participants the NGCP/TMI ASPA experienced

Power supply critical in Mindanao, ample in the Visayas – DOE chief

The Philippine Star
February 20, 2011

Power supply,coal-powered plants,cebu,Phil chamber of commerce and industry,cold weather,oi-fired generation plant,national power corporation.

MANILA, Philippines – Luzon may get lucky to experience no brownouts this dry season despite tight power supply that requires 300 megawatts more during day-time peak hours.

The Visayas, except for a few islands, has escaped the power crisis with the commissioning of three new coal-powered plants in Cebu and Panay.

The new plants will be more than enough to meet peak demand and required reserve margins in the central Philippines group of islands.

The daily brownouts in Mindanao may persist this year as no new generating capacity is expected to be added.

These are the hard facts on the electric power situation in the country presented by Energy Secretary Jose Almendras in a dialogue with leaders of the business community led by the Philippine Chamber of Commerce and Industry (PCCI) the other day.

We have had a little luck as electricity demand in Luzon went down last December and in January because of the cold weather, Almendras said.

The biggest island, he admitted, is not yet off the hook. It now has very thin reserve and may need to import the excess capacity in the Visayas and activate the retired oil-fired generation plant in Navotas if the situation deteriorates.

We are monitoring the performance of the power plants daily and checking if private sector owners of the sold National Power Corp. (Napocor) plants are upgrading the efficiency of aging plants he explained.