August 27, 2014

Winning bidders to take over Unified Leyte IPPA strips by year-end

BusinessWorld today reported that the turnover of the independent power producer administrator (IPPA) contracts for the strips of energy from the Unified Leyte Geothermal Power Plant (ULGPP) will happen by 4Q14. The ULGPP strips were awarded to the winning bidders last February but the actual turnover was not done immediately because of damages sustained by ULGPP as a result Typhoon Yolanda in November last year. ULGPP has a total capacity of 588.5MW and is currently owned and operated by Energy Development Corp (EDC).

A total of 200MW, divided into strips of up to 40 MW, were awarded to various companies. The winning bidders receiving 40MW each were (a) FDC Utilities (P5.2555/kWh), a wholly-owned subsidiary of Filinvest Development Corp (FDC), (b) Unified Leyte Geothermal Energy Inc (P5.21/kWh), a wholly-owned subsidiary of EDC, (c) Trans-Asia Oil and Energy Development Corp (P5.0166/kWh), and (d) Aboitiz Energy Solutions Inc (P4.9188/kWh), a subsidiary of Aboitiz Power Corp (AP). Other bidders who won smaller strips of energy were Waterfront Mactan Casino Hotel Inc (P4.90/kWh - 3MW), Good Friends Hydro Resources Corp (P4.88/kWh - 20MW) and Vivant Corp (PHP4.6629/kWh - 17MW).

The remaining bulk capacity in excess of 240MW (PSALM retained 40MW as security), however, will be re-auctioned by next year. EDC’s Unified Leyte Geothermal Energy Inc (ULGEI) won the bid but rescinded its offer in November 2013. ULGEI reasoned the physical and economic conditions underlying the bidding process have been dramatically altered by the severe and widespread destruction caused by Typhoon Yolanda.- WealthSec