PSALM, NPC sign new O&M deal

For remaining state-owned power assets

After more than a year of void, a new Operation and Maintenance Agreement (OMA) was sealed by the Power Sector Assets and Liabilities Management Corporation ( PSALM) and National Power Corporation (NPC) as to the operations of the remaining state- owned power assets.

Under the pact, it was stipulated that NPC will remain as service pro- vider to the PSALM-transferred power facilities.

According to PSALM President Emmanuel R. Ledesma Jr., the agreement is in accordance with the provisions of the Electric Power Industry Reform Act (EPIRA) under Section 47 (j).

Ledesma has explained that under the new OMA, “NPC will operate, maintain and manage PSALM’s remaining power plants and appurtenant assets, other assets and other facilities.”

He stressed that NPC will be “tasked to maximize plant availability and performance, minimize outages and operations and maintenance costs, minimize long-term deterioration of equipment and prepare the assets for sale and transfer.”

Primarily covered in the O&M pact are the Power Barges 101, 102, 103 and 104; as well as the Agus-Pulangui hydropower facilities.

Ledesma further noted that its precursor firm NPC will “provide personnel for supervision and preservation of PSALM’s decommissioned plants and other facilities to prevent the deterioration of serviceable equipment and systems prior to disposal or privatization.”

The agreement will similarly delve with the divestment plan for the remaining decommissioned power assets of the government – including the Sucat thermal power plant in Muntinlupa City and the Bataan thermal power plant in Limay, Bataan.

State-run NPC will similarly continue “to discharge its duties and obligations under existing IPP ( independent power producer) contracts,” according to the agreement.

The company is also enjoined to “prosecute and defend cases related to assets covered by the OMA, and undertake titling for PSALM’s real estate assets.”

The OMA is the document that legally binds the transfer of assets and liabilities of NPC to PSALM as prescribed under the power industry reform law.