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Monday, April 15, 2024

PSALM eyes OMSC for Casecnan Multipurpose

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THE  Power  Sector  Assets  and  Liabilities  Management  Corporation  (PSALM)  will  procure an Operation and Maintenance Service Contract (OMSC) for the  Casecnan Multi-Purpose Project (CMPP).

“PSALM  intends  to  begin  the  procurement  of  the  OMSC  by  the  second  week  of  September  2021  through  a  competitive  public  bidding  process.  The  contract  will  be  effective for one year until PSALM commences and completes the plant’s privatization by  the  end  of  2022,” said PSALM President and CEO Irene Besido-Garcia.

The CMPP is covered by a Build-Operate-Transfer (BOT) contract between the National  Irrigation  Administration  (NIA)  and  the  Independent  Power  Producer,  CE  Casecnan  Water and Energy Company Inc. (CE Casecnan).

All  proceeds  from  the  privatization  of  the  Casecnan Hydroelectric Power Plant will be divided by NIA and PSALM in accordance with their  ownership interest in CMPP, added  the PSALM official.

PSALM said NIA had just agreed to allow it to be the one to procure the OMSC.  With  the  concurrence  of  the  Department  of Finance  and the  Department  of  Energy, PSALM will undertake the procurement of the OMSC pursuant to Republic Act No. 9184  or  the  “Government  Procurement  Reform  Act.”  Thereafter,  PSALM  will  work  on  the  terms of the privatization of the CMPP through public bidding.

This is to ensure the continuing operations of  the  CMPP’s  irrigation  component  and  the  150-megawatt  (MW)  Hydroelectric  Power  Plant component after the ownership of the CMPP is turned over to the government in  December 2021.

CMPP started commercial operations in  2002 and will expire on December 11, 2021.  There is a Power Purchase Agreement (PPA)  between NIA and PSALM, whereby NIA will transfer 60 percent of the ownership of the CMPP  to PSALM by the end of the PPA.

The  CMPP  provides  19  million  kilowatt-hour  of  hydroelectric  power  per  month  to  supplement the energy supply in the Luzon grid. It also ensures continuous irrigation  services to about 139,200 hectares of farmland in Nueva Ecija, Pampanga, Bulacan and  Tarlac, amounting to 58.333 million cubic meters per month in accordance with the  water protocol prescribed by the NIA. 

Read full article on BusinessMirror

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