'Outright Sale' Planned for Agus Plants

Article excerpt

The technical working group of the Power Sector Assets and Liabilities Management Corporation (PSALM) has proposed an outright sale for the Agus hydropower complex in Mindanao, as culled from its study outcome. The Agus TWG recommended that the only option for privatization is an outright sale by way of public bidding in compliance with EPIRA (Electric Power Industry Reform Act) and its IRR (implementing rules and regulations, a document submitted by PSALM to the Department of Energy (DOE) has noted. The recommended privatization mode also took into account other relevant government rules and regulations such as the Commission on Audit Circular No. 89-296. The study outcome emphasized that it excluded other options such as privatization by way of shares of stocks, corporatization and other special purpose vehicle, or the scheme wherein a private sector operation and maintenance (O&M) operator will be tapped. The study, which was undertaken upon the direction of the energy department, was concluded early part of this year. The targeted privatization timeframe for the Agus complex is year 2017, and it will be done together with the 255-MW Pulangui hydropower facility. The PSALM report said it took into consideration the technical/operational concerns brought about by the cascading nature of water releases from Lake Lanao to the Agus hydroelectric power plants. …