12 investors to bid for small power utilities in Masbate
The Philippine Star 09/18/2006
The International Finance Corp. (IFC), the financial advisor for the privatization of the areas under the Small Power Utilities Group of the National Power Corp. (Napocor), has reported that at least 12 investors have expressed interest to participate in the bidding for SPUG in the province of Masbate.
In a report to Energy Secretary Raphael P.M. Lotilla, IFC, the investment arm of the World Bank, said the 12 investors have already submitted their respective expressions of interests (EOIs) for Masbate.
Launched last July 25, 2006, IFC said, the private sector participation (PSP) in the Napocor-SPUG Areas for Masbate had positive results in as far as EOIs are concerned.
The IFC issued requests for proposals last month while submission of bids are expected to come in by mid-October, to be followed by the announcement of the winning bidder by end of October this year.
The report has also indicated that activities relative to the second PSP has also been started in Occidental Mindoro.
"Due diligence report was completed in March 2006. There are legal and contractual issues that need to be resolved. IFC will submit its formal recommendations to address these issues," the report said.
The third batch of the PSP for SPUG, comprising of the three islands of Sulu, Basilan and Tawi-Tawi in Mindanao, will start this September, with the signing of a memorandum of agreement (MOA) with each of the island’s electric cooperatives.
The privatization of SPUG Areas was mandated by Department of Energy (DOE) Circular No. 2004-01-001 issued on Jan. 26, 2004. It calls for the periodic assessment of the requirements and prospects of bringing power generation and associated power delivery systems to commercial viability on an area-by-area basis, including a program to encourage private sector participation in the SPUG areas.
The said circular prescribed the guidelines for private sector participation in existing National Power — SPUG areas. This undertaking is consistent with the objectives of the Electric Power Industry Reform Act (EPIRA) and its implementing rules and regulations. In 2005, Napocor identified the first wave areas comprising of 14 islands nationwide.
The program is part of a determined effort of the DOE and Napocor to turn over to the private sector the generation of power in these islands, which hopefully will result in some annual operating cost savings of P1.5 billion.
The International Finance Corp. (IFC), the financial advisor for the privatization of the areas under the Small Power Utilities Group of the National Power Corp. (Napocor), has reported that at least 12 investors have expressed interest to participate in the bidding for SPUG in the province of Masbate.
In a report to Energy Secretary Raphael P.M. Lotilla, IFC, the investment arm of the World Bank, said the 12 investors have already submitted their respective expressions of interests (EOIs) for Masbate.
Launched last July 25, 2006, IFC said, the private sector participation (PSP) in the Napocor-SPUG Areas for Masbate had positive results in as far as EOIs are concerned.
The IFC issued requests for proposals last month while submission of bids are expected to come in by mid-October, to be followed by the announcement of the winning bidder by end of October this year.
The report has also indicated that activities relative to the second PSP has also been started in Occidental Mindoro.
"Due diligence report was completed in March 2006. There are legal and contractual issues that need to be resolved. IFC will submit its formal recommendations to address these issues," the report said.
The third batch of the PSP for SPUG, comprising of the three islands of Sulu, Basilan and Tawi-Tawi in Mindanao, will start this September, with the signing of a memorandum of agreement (MOA) with each of the island’s electric cooperatives.
The privatization of SPUG Areas was mandated by Department of Energy (DOE) Circular No. 2004-01-001 issued on Jan. 26, 2004. It calls for the periodic assessment of the requirements and prospects of bringing power generation and associated power delivery systems to commercial viability on an area-by-area basis, including a program to encourage private sector participation in the SPUG areas.
The said circular prescribed the guidelines for private sector participation in existing National Power — SPUG areas. This undertaking is consistent with the objectives of the Electric Power Industry Reform Act (EPIRA) and its implementing rules and regulations. In 2005, Napocor identified the first wave areas comprising of 14 islands nationwide.
The program is part of a determined effort of the DOE and Napocor to turn over to the private sector the generation of power in these islands, which hopefully will result in some annual operating cost savings of P1.5 billion.
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