The Power Sector Assets and Liabilities Management Corp. is concerned that the delay in the bidding of the Palinpinon and Panay power plants will affect its target of 50 percent privatization in 2007, its vice president, Froilan Tampinco, said.

Tampinco said the Geothermal Resources Supply Contract to be attached to the sale of Palinpinon has not been discussed by the Joint Congressional Power Commission.

We cannot effect the sale without the GRSC that needs JCPC approval, he said.

PSALM has already privatized at least 42.8 percent of the National Power Corp. assets and the sale of the Palinpinon geothermal plant is seen to complete the 50 percent level, he also said.

It moved the bidding for Palinpinon to Dec. 19 from an earlier bidding date of Dec. 5.

If PSALM fails to reach the 50 percent this year, Tampinco said, there is danger they will not meet the 70 percent level, a precondition for open access and retail competition in the power industry.

The 192.5-megawatt Palinpinon Geothermal Power Plant in Valencia , Oriental and 146.5-megawatt Panay Diesel Power Plants in Dingle, Iloilo are being offered by PSALM as one generation package, including a power supply allocation, he said.

Palinpinon has two power stations, the Palinpinon I and II, being commissioned by the PNOC-Energy Development Corp. while the Panay Diesel Power Plant, consisting of the 36.5-megawatt Panay 1 and and 110-megawatt Panay 3 plants, are facilities of the National Power Corp, Tampinco said.*NLG

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