Masinloc Plant Bidding
Take two
The re-auction of the 600-megawatt Masinloc Coal-Fired Thermal Power Plant concluded on 26 June with Masinloc Power Partners Co. Ltd. being declared as the highest bidder for the power facility. The Power Sector Assets and Liabilities Management Corporation, the government’s power privatization arm, announced that Masinloc Power had bested five other bidders, including First Gen Corporation and Masinloc Consolidated Power Inc.
Masinloc Power, a consortium led by Singapore-based AES Transpower Pt. Ltd., bid US$930 million for the 25-year concession to operate the facility located in Zambales and a transition supply contract covering 265 megawatts. The offer is US$368.3 million higher than the winning bid submitted by YNN Pacific Consortium for the original auction. The YNN contract was terminated after YNN failed to pay the US$227 million upfront fee. PSALM is currently verifying Masinloc Power’s bid documents for accuracy, authenticity, and completeness before officially declaring the latter as the winning bidder.
With the successful bidding, outgoing Energy Secretary Raphael Lotilla ended his term at the Department of Energy in July on a positive note. Sec. Lotilla commended PSALM and said the enthusiastic response to the auction “manifested strong confidence among foreign and local investors in the country’s power assets.”
In line with its goal to electrify the whole country and build a reliable, secure, and affordable power supply, the Philippine government, through PSALM, has been trying to privatize generation assets owned and operated by the National Power Corporation. However, of the 30 power plants that the government wants to dispose of, PSALM has been able to sell only 9 since 2001. Aside from the Masinloc plant, these are the Tolomo, Agusan, Barit, Cawayan, Loboc, Pantabangan, Masiway, and Magat plants, all hydroelectric facilities.
E-Jeepney
The King of the Road Goes Green
About 777,000 air-polluting vehicles ply the streets of Makati each day. Diesel-belching jeepneys are among the biggest contributors to the city’s smog, but these kings of the road may soon be cleaning up their act. On 4 July 2007, the Green Renewable Independent Power Producer (GRIPP), in partnership with Greenpeace and the Makati City local government, conducted a test drive of two electric jeepneys, or e-jeepneys, around the city. Said to be the first of its kind in Southeast Asia, the e-jeepney is the latest adaptation of the iconic jeepney introduced in the 1950s and now the most widely used public transport vehicle in the country.
Designed by the Philippine company Solar Electric Company but manufactured in China, the aluminum vehicle has solar panels on its roof but is generally powered by a rechargeable battery. For each eight-hour charge, the battery can power the vehicle for up to 120 kilometers at an average speed of 40 kilometers per hour. Since charging e-jeepneys using electricity generated from fossil fuels defeats the purpose of reducing their carbon footprint, their operation must be accompanied by the development of a biogas power station and a biodigester plant—a power plant that will generate power from methane produced from biodegradable wastes. The organic waste can be collected from wet markets, food establishments, and households.
After comprehensive technical and commercial testing, GRIPP, the primary proponent of the e-jeepneys, hopes to be able to field 50 units in three to five years with the help of funding from the Dutch DOEN Foundation. Each unit costs P350,000. The long-term goal is to field them nationwide, and even in other countries, in a bid to cut air pollution and to promote renewable energy. On 13 July, the e-jeepney was also launched in Bacolod City.
