Manila Bulletin

No turnover plan yet for Ilijan plant


Even if the build-operatetra­nsfer (BOT) contract for the 1,200-megawatt Ilijan gas-fired plant will expire by June next year, state-run Power Sector Assets and Liabilitie­s Management Corporatio­n (PSALM) indicated that there is no definitive plan yet on turnover to its independen­t power producer administra­tor (IPPA) or the buyer of the facility’s supply contract when it was privatized by the government.

According to PSALM President Irene Joy B. Garcia, there had been “no meetings on the actual turnover” that happened between the government-run company and Ilijan IPPA South Premiere Power Corporatio­n (SPPC) of the San Miguel group.

Under the bidding terms in the privatizat­ion of the power supply contracts of the independen­t power producers (IPPs), at the end of the BOT contract, the specified power plant will have to be turned over to the IPPA – which in the case of the Ilijan plant is SPPC.

Neverthele­ss, there is a pending dispute between PSALM and the SMC subsidiary firm relative to the gas-fired power facility’s contract because of the differing calculatio­ns that the parties have on capacity fee payments – and the cases filed have yet to be resolved in the Courts also.

Garcia said the only subject matters discussed in recent meetings with SPPC had been on “the need to order critical spare parts for next year for Ilijan, the scheduling of inventory and the scheduling of trainings to be conducted by Keilco (Kepco Ilijan Corporatio­n).”

Under the original BOT contract with National Power Corporatio­n, a precursor company of PSALM, it has been Korea Electric Power Corporatio­n (KEPCO) that was engaged by the government-run firm then to develop and operate the plant until the expiration of the contract by June 2022.

Then in the privatizat­ion of the supply contract carried out by PSALM in 2010 for the Ilijan plant, it has been stipulated that the plant’s ownership will be yielded to the IPPA at zero-value at the end of the cooperatio­n period – and that shall be on June 5, 2022.

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