Neves Osorio, CEO of PSALM, provided an update to the Amerian Chamber of Commerce’s Energy Committe this morning in Manila (Makati).
I wish PSALM would just go ahead and publish the presentation slides on their website. There is an old set there – why not keep it current? I have hard copies – maybe I should just scan and publish. I didn’t see any copyrights.
Not a lot of news. They will be contracting with a third party to manage the auction of the non-operating assets such as the 225 MW Bataan thermal plant and the 200 MW Manila thermal plant. Her rationale was something to the effect that ” these types of assets take up a lot of our time and they are essentially equipment only sales.”
It was my understanding that PSALM expects to issue the invitation to bid for the Transco concession in the first quarter of this year and that bids will not be due before ERC makes a final determination on the allowed “asset base” and “WACC” (weighted average cost of capital) – which is expected, she said, by April 30th.
For Transco, PSALM expects a bid price from bidders “as if they had ownership of assets.” She also clarified that there will be a payment from the government to the concessionaire at the end of the concession period to cover the unamortized investments made by the concessionaire during the concession period (which will be 25 years, with an optional 25 year extension).
PSALM is still finalizing the TOR for the IPP Administrator contracts.
PSALM will be hosting an Investor’s Forum in February but I understood that it will be “after WESM starts and after we settle things with our biggest customer.”
Here is the the sale sequence she released:
January-June 2006
- 225 MW Bataan Thermal (non-op)
- 600 MW Calaca Coal (again)
- 275 MW Tiwi, 410 MW Macban Geothermal
- 100 MW Pantabangan, 12 MW Masiway Hydro
July-December 2006
- 360 MW Magat Hydro
- 200 MW Manila Thermal (non-op)
- 310 MW Navotas I & II
- 114 MW Iligan I & II Bunker
The rest are scheduled in 2007 and 2008