The privatisation agency has named First Gen Hydro Power Corp, SN Aboitiz Power Hydro and Calaca Power Partners as the three contenders for the two hydropower plants being auctioned – Ambuklao (75MW – inactive) and Binga (100MW), which are located on the upper Agno river in Northrn Luzon.
Under the arrangements with the National Power Corp, and with bidder agreements, there will not be any requirement to attach power supply contracts to the sale of the Ambuklao and Binga plants. The schemes are operated seasonally when there is sufficient stored water and that variability could cause too much risk in fulfilling power supply contracts.
Last year, First Gen won the auction of the 112MW Pantabangan-Masiway hydropower plants with a bid of US$129M.
At the end of 2006, SN Aboitiz Power Hydro secured the 360MW Magat power plant with a bid of US$530M.
Earlier this year, Calaca Power, operating under the name Masinloc Power partners Co, won the auction of the 600MW Masinloc coal-fired plant.
The Ambuklao plant was built in 1956 with three 25MW units that have been under preservation by the National Power Corp for the last seven years. Water releases from the Ambuklao headwater is being used to regulate flows for the Binga plant at present. The Binga plant (four 25MW units) was completed in 1960, and it can operate both as a base-load or peaking facility.
Under the terms of the auction, the winning bidder will have to rehabilitate the Ambuklao plant and ensure at least 65MW of operational capacity within seven years.
