State-run Power Sector Assets and Liabilities Management Corp. said its board approved a negotiated bidding with a unit of Energy Development Corp. for the bulk energy contracts of the Unified Leyte Geothermal Power Plants.
PSALM president Lourdes Alzona said the board decided that the “privatization of UL bulk is through negotiated sale before end of this year.”
Alzona said the Unified Leyte bulk energy privatization was the remaining big ticket power item up for privatization this year.
PSALM declared as failed bidding the selection and appointment of the independent power producer administrator of the bulk energy contract in September, after only Unified Leyte Geothermal Energy Inc., a subsidiary of EDC, submitted a bid.
“We manifested our willingness to negotiate,” EDC executive vice president Ernesto Pantangco said earlier.
Unified Leyte Geothermal of the Lopez Group emerged as the highest bidder with its P215-million bid million in November 2013.
The company, however, decided to withdraw from the privatization, citing damage of the plants suffered from typhoon Yolanda in 2013, forcing PSALM to rebid the bulk energy contract this year.
PSALM earlier awarded 200 MW total capacity from strips of energy from the Unified Leyte geothermal plants to the winning bidders.
The Unified Leyte Geothermal Power Plants include the 125-MW Upper Mahiao, 232.5-MW Malitbog, 180-MW Mahanagdong power plants and the 51-MW optimization plants.
The power project is covered by power purchase agreements between National Power Corp. and EDC.