PSALM, a government agency, is responsible for handling the sale of the Philippines’ National Power Corporation’s assets. The privatization involved the award of Independent Power Producer Administrator (IPP Administrator) contracts.
San Miguel Energy Corporation (SMEC) was the successful bidder for the IPP Administrator role for the 1000MW Sual coal fired power plant in Pangasinan, with a bid of $1.072 billion. Therma Luzon, a subsidiary of Aboitiz Power, secured the deal for the 700MW Pagbilao coal-fired power plant in Quezon for $691m.
SMEC and Therma Luzon were the two highest bidders in this rebid for the selection of IPP Administrators for these two significant thermal power assets that are contracted under long term power off-take arrangements by National Power Corporation.
John Yeap, a partner of Pinsent Masons, who led the deal for Pinsent Masons, said: “These IPP Administrator roles represent a novel and cost effective way for participants in the Philippine Wholesale Electricity Supply Market to participate in that market through contractual rights without the capital constraints that come with direct and immediate physical ownership of assets.”
