The Power Sector Assets and Liabilities Management Corp. (PSALM) is optimistic bidders will continue to join the privatization of the Caliraya–Botocan–Kalayaan (CBK) hydroelectric power plant complex in Laguna despite planned changes.
Instead of bidding for an independent power producer administrator (IPPA), PSALM now wants an outright sale of the facility, Dennis Edward Dela Serna, PSALM president and chief executive officer, said in a message to reporters yesterday.
PSALM said such decision will also “give maximum value to its stakeholders.”
IPPAs are qualified private sector independent entities that will administer and manage the output from power plants that are still managed by the government.
“There is a term for IPPA with asset sale. Given the term of the IPPA is short, we decided for a straight asset sale,” Dela Serna added, noting the shift is not seen to lower the bid value.
CBK is comprised of three separate hydro facilities with a contracted capacity of 796.64 megawatts (MW). It is currently run by independent power producer CBK Power Co. Ltd. under a 25-year build–rehabilitate–operate–transfer contract which expires next year.