Keeping fingers crossed on Tiwi-Makban sale

If we are to believe the Power Sector Assets and Liabilities Corp. (PSALM), the Tiwi-Makban geothermal plant complex should be bidded out on July 30.



PSALM vice-president for asset management and electricity trading Froilan Tampinco said that it is all set for the bid date with four pre-qualified bidders as the agency has approved the final transaction documents.

Tampinco confirmed there are four pre-qualified bidders for the Tiwi-Makban assets but he refused to name them. However, the Philippine Star reported that industry sources said the four potential bidders are Energy Development Corp. of the Lopezes, Aboitiz Power Renewable, Korea Electric Power Co. and Suez Energy.

It added that sources said Suez Energy is likely to back out from the bidding, but Tampinco said the European power firm is still in the game.

But from the way the statements are issued on the sale, PSALM looks guardedly optimistic at best.

Apprehensions still linger that the bidding for the Tiwi-Makban geothermal power facilities may be pushed back much later due to some unresolved issues on geothermal supply contracts as in the case of Palinpinon.

For the planned sale this year, the bidding for Tiwi-Makban was originally scheduled for June 4, moved to June 27, and finally to July 30. However, the facility was originally put up for sale in late 2005, postponed a few times and finally rescheduled for this year.

If successful, this would be the first geothermal facility to be privatized.

In this planned sale the credibility of the privatization process and of the PSALM itself, would be severely tested.

Let us keep our fingers crossed.