February 14, 2014

Trans-Asia bags 40MW of Unified Leyte contracted capacity

In a disclosure to the Exchange, Trans-Asia Oil and Energy Development Corporation's (TA) said it received and accepted the notice of award from the Power Sector Assets and Liabilities Management Corporation for the sale of 40MW of the Unified Leyte Geothermal Plant (UGLP) capacity.

Our Take: A currently has a total capacity of 73 MW of generating power to the Luzon grid and another 20MW from being the sole offtaker of the Maibarara plant. The IPPA contract for the ULGP capacity can potentially be profitable for the administration.

However, we note that bids were made based on economic parameters and assumptions prior to the destruction caused by the super typhoon. As such, the economics of the bids may have changed. It is for this reason that Energy Development Corp (EDC) earlier rejected the award of similar contracts that it won involving up to 400MW of ULGP capacity.– WealthSec