|
GOVERNMENT-RUN Power Sector Assets and Liabilities
Management Corp. (Psalm) formally turned over Thursday
the 75-megawatt (MW) Ambuklao and 100-MW Binga
Hydroelectric Power Complex to SN Aboitiz Power Benguet
Inc. (SNAP Benguet).
With an
offer of $325 million for the Benguet-based facilities,
SNAP Benguet was declared the highest bidder for the
Ambuklao-Binga power complex in the November 28, 2007,
bidding.
The
ceremonial keys to the plants will be turned over by
Energy Secretary Angelo Reyes and Finance Secretary
Margarito Teves to Erramon Aboitiz, Equity Ventures
executive vice president and chief operating officer.
Comprising the country’s first and second hydroelectric
power plants, respectively, the Ambuklao-Binga power
facilities run along the upper portion of Luzon’s
longest waterway, the Agno River. Binga, located in
Itogon, Benguet, lies 19 kilometers downstream of the
Ambuklao plant in the Bokod town of the province.
Construction of the Ambuklao plant was completed in
December 1956. Ambuklao’s three 25-MW generating units
have been under preservation by the National Power Corp.
since 2000.
At
present, the release of water from the Ambuklao Dam is
being regulated for use by the Binga hydro plant.
The
Binga plant consists of four 25-MW generators
commissioned in 1960. It can operate as a base-load
plant when the water level is high and as a peaking
plant when water level is low. It can also provide
ancillary services.
One of
the responsibilities of SNAP Benguet is to rehabilitate
the Ambuklao plant and make it operational to 65-MW
minimum within seven years from the date of turnover,
PSALM pointed out.
SNAP
Benguet will pay at least 40 percent of its bid, or
about $130 million. The entire bid amount will go to the
liquidation of Napocor’s debts, as specified in the
Electric Power Industry Reform Act (Epira), to ease the
government’s debt burden.
The
transaction closes much earlier than the contractual
deadline of 2009, thanks to the concerted efforts of
PSALM and SNAP Benguet.
PSALM
has successfully bid out 12 power plants, representing a
48.9-percent privatization level. It expects to reach
the 70-percent privatization level as stipulated in the
Epira by year-end, in order to facilitate open access
and retail competition in the Philippine power industry. |
