Philippine generator to bid for 360-MW Magat hydro

Philippine power producer Aboitiz Equity Venture Inc. (AEV) says it will bid jointly with Statkraft Norfund Power Invest of Norway (SN Power) in a privatization auction of the 360-MW Magat hydropower plant.

Magat, in Isabela province in the northern Philippines, is expected to be auctioned by the government in November as part of the privatization of dozens of power plants of National Power Corp. (Napocor). (HNN 9/11/06)

“Both AEV and SN Power will bid for Magat,” Aboitiz Chief Operating Officer Erramon Aboitiz said October 9.

Aboitiz and SN Power — which is owned by Norway’s utility Statkraft and investment fund Norfund — submitted a bid for two hydropower plants auctioned in September, but lost to a unit of Philippine independent power producer First Gen Corp.

The government has said 13 firms are keen to bid for Magat. Industry sources have said other interested firms include Korea Electric Power Corp. and U.S.-based CalEnergy.

As a sweetener to prospective bidders, the government has said it plans to attach a supply contract equivalent to 10 to 15 percent of the capacity of the plant to assure a ready market.

Magat, which was built at a cost of US$83.7 million, started commercial operations in 1983. It has four 90-MW units commissioned in 1983-1984 at Ramon, Isabella, Luzon.

For information, contact Froilan A. Tampinco, Vice President, Asset Valuation and Disposal, Power Sector Assets and Liabilities Management Corp., 2nd Floor, SGV II Building, Ayala Avenue, Makati City, Philippines; (63) 2-8938202, extension 202; Fax: (63) 2-8403896; E-mail: fatampinco@psalm.gov.ph; Internet: www.psalm.gov.ph.

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