Asian Energy Advisors

Here’s the PSALM announcement.

There were six offers. Winning bid was US$930 million. That’s $1,550/kW.

That’s 65% higher than the $937/kW bid for Masinloc of Ranhill Berhad/YNN Pacific that failed to close. And you can compare it also to the $1,472/kW SN Power/Aboitiz paid for Magat Hydro and the $1,152/kW First Gen paid for Pantabangan/Masiway Hydro.

AES is involved. I expect this one to close.

High auction prices are a double edged sword for us here in the Philippines. It provides a high influx of cash to the national treasury. But it also indicates a very firm expectation by the buyers of high electricity prices for the next ten or more years.

Update: Donnabelle Gatdula of the PhilStar has more info on the bids here and Myrna Velasco of the Bulletin here. It looks like the reserve price was $450 million or $750/kW.

Update 8-29-07: The links above to news articles on bid price info are dead. But these are still live: Manila Standard and Manila Bulletin and the bids are listed in my comment here. PSALM subsequently disclosed the floor price here of $650 million.