IPPs sale to make Napocor debt-free

The Power Assets and Liabilities Management Corp. (PSALM) is paying down the National Power Corp.'s (Napocor) entire debt stock with the $13 billion expected from the privatization of independent power producer (IPP) contracts which starts in August. Napocor has total debts of $ 7.2 billion. Of the total, PSALM is prepaying $2.4 billion ahead of their maturities in 2009, 2010 and 2011. At the end of 2007 PSALM had raised a total of $2.7 billion from the auctions of 12 power plants and expects to collect a total of $1.9 billion this year, having already raised raised $930 million from AES Corp.'s full payment for the Masinloc coal-fired plant. An additional $500 million is expected from Suez-Tractebel, the winning bidder for the Calaca power plant. The Energy Power Industry Reform Act (EPIRA) mandated the privatization of the IPP contracts in Luzon and the Visayas to pave the way for open access and retail competition and reduce electricity prices. Napocor has 15 IPP power plants, the larrgest of which are the 1,200-MW Ilijan natural gas-fired power plant, the 700-MW Pagbilao coal-fired power plant, the 1,000-MW Sual coal-fired power plant, and the 345-MW San Roque hydroelectric power plant.

in Malaya by Myla Iglesias
April 21, 2008
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