Great New Philippine Energy Search Facility

... discussed here.

Pipedream, Savior, or In Between?

World Bank's view of the Philippine Rural Electric Cooperative sector.

For better or for worse, they have been single-mindedly hammering on this for years.

World Bank Report on Philippine Electric Cooperatives

I haven't had a chance to look at this yet. But here's the link.

Philippines Rural Electrification Regulatory Framework
Project
Final Report
March
2004

Eyeballing Artech

A consortium of Coastal Power and Applied Research Technologies Philippines (Artech) won a "competitive bid to supply power to the Philippine islands of Marinduque, Romblon, and Tablas."

Reynaldo Uy and Victorino Sianghio are apparently the president and managing director, respectively, of Artech which last year reportedly had an agreement with Capelco (not to be confused with Cepalco) to take over operation of its electric system and operate it for 25 years.

Last October, the Philippine Veterans Bank announced it had granted a P155-million five-year term loan facility to rehabilitate a power plant in Capiz under a Rehabilitate-Operate-Transfer (ROT) project. Apparently the loan was to be made to Enervantage, a special project company jointly owned by TG Property Inc. and Artech. TG Property is part of the Tanco Group (see Smokin' Yosi) and controlled 70% of Enervantage.

I guess some portion of the previous deal fell through and they bounce back with Coastal in the IFC/DOE "solicitation."

GIS for Transco

GeoData gets a $600,000 contract to provide GIS system for Transco.

Great idea. It's not nearly aggressive enough, though. $600k sounds light, even if it is only for two of Transco's twenty districts but if they can do it in a reasonable time - great.

Let's see, at $300,000 a pop for each district, that will add up to about $6 million to cover the whole country. I have to question whether they can do it for that in any reasonable time frame.

Globaleq Ltd.

There's a new player in the Philipine power sector. El Paso Corp. has sold all of its ownerhip rights in Philippine assets to Globeleq Ltd. The assets involved are:

80% of the 120-MW Cebu project in Ermita

100% of the 50-MW East Asia Utilities project in Lapu-Lapu City

65% of the 242-MW Duracom Mobile Power & East Asia Diesel Power facility in Navotas.

Globeleq is a wholly owned subsidiary of the CDC Group, which is the UK government's instrument for investing in the private sector in developing economies.

Their mission:

to generate wealth, broadly shared, in emerging markets by providing capital for investment in sustainable and responsibly managed private sector businesses

Hmmmm .... interesting player.

According to this 2004 press release, here's Globeleq's Board

John Baker, previous Chief Executive and Chairman of National Power, was appointed Chairman of the Board. Peter Giller, former Chief Executive Officer of International Power and former President of ABB Energy Ventures; and Jacob Worenklein, Chairman and CEO of US Power Generating Company and previous global head of Societe Generale's Project and Sectorial Finance Group, were both appointed Directors.

In addition to the Chairman and the two newly-named Directors, the Board includes two representatives from CDC Group, the sole shareholder of CDC Globeleq; and Robert Hart, CEO of the company

Power stuff

Today's Global Power Report reports that YNN Pacific Consortium, a legless shell corporation that was awarded the 600 MW Masinloc plant in NPC's auction late last year for $561 million, has made an initial $11 million payment to the government. That's cool.

Aboitiz Equity Ventures has consolidated its three hydroelectric subsidiaries into one, Hedcor, with 253 employees. 113 MW in service with 276 MW in development. These guys are will positioned to be quite profitable in a a deregulated wholesale energy market.

Hydro has a nice self-hedging characteristic in competitive hydro-thermal markets: In dry hydro years, product output is down, but prices are up. In wet hydro years, prices are down, but product volume is up.

This is a test entry.

PSALM seeks JCPC nod for bidding

ABS-CBN. Monday, February 21, 2005 12:21 AM
By LENIE LECTURA
TODAY Reporter

The Power Sector Assets and Liabilities Management Corp. (PSALM) will seek an endorsement from the Joint Congressional Power Commission (JCPC) as a final step before the public bidding for the National Transmission Corp. (TRANSCO) concession contract takes place this month.

“We will meet and brief the JCPC members on February 24 to get their final say for the last time before we bid out TRANSCO,” Energy Secretary Vincent Perez, PSALM vice chairman, said.

The list of the participating companies vying for the TRANSCO assets will be out soon, said TRANSCO president Alan Ortiz. “We might not come up with the winning bidder this month but we can identify who will bid.”

President Arroyo had wanted the bidding to take place this month and the awarding of the contract to take place not later than June.

The country’s transmission system is estimated to be worth $2billion to $3 billion. The government is to require at least 25 percent of the enterprise value of the business, payable upon closing of the transaction.

TRANSCO would be privatized through a concession agreement, which will be for a 25-year period renewable for another 25 years subject to performance conditions.

“Amid the tax bills still pending before the Senate, the President is pushing for an early TRANSCO privatization. An initial 25-percent payment will mean that the government is assured of $500 million. The President wants it done and she wants it done fast,” said a source.

Due to unresolved legal and procedural issues, PSALM earlier said it has delayed for the third time its privatization deadline for the transmission assets.

PSALM president Raphael Lotilla said the company is awaiting clarification from the justice department on whether it can proceed with the public bidding instead of an earlier plan for a negotiated sale.

PSALM has already completed the new terms of reference (TOR) for the TRANSCO bidding.

Four consortia had been discussing with the government for a negotiated TRANSCO bid until the latter decided to resort to another public bidding.

A Today source said the list is composed of:

• The Electricity Generating Authority of Thailand (EGAT) that was joined by CITRA of the Salim group. EGAT is a monopoly and owner of the second-biggest publicly-traded private power producer in Thailand.

“They will be in charge of the technical aspect of the contract assuming that they win. They picked Northeast Development and Acquisition Corp. (NEDAC) as their local partner, [to] be in charge of financing,” said the source.

• The tandem between Japan’s Tokyo Electric Corp. to be joined by US-based Trans-Electric and San Miguel Corp. with Morgan Stanley.• First Pacific Co. Ltd. and Trans-Grid of Australia. However, FPC managing director Manuel Pangilinan, in a chance interview on Friday, said the company was “not looking into TRANSCO.”

• Hydro Quebec and SNC Lavalin.

Of the four groups, three wrote back to PSALM’s notice regarding the coming bidding. “But they all still have up to on or before February 28 to make up their minds on whether to join the bidding or not,” added the source.

A new party, reportedly a relative of the royal family of Brunei Darussalam, has also expressed interest to bid.

“One of the three new interested parties that will join the bid for the TRANSCO contract includes a cousin of the Brunei Sultan, who will be joined by a local group composed of former National Power Corp. (NPC) employees in forming a consortium to bid for the TRANSCO concession,” the source earlier said.

Pinamucan plant transfer to Iloilo nearly complete

[Balita,]The National Power Corp. (NAPOCOR) on Wednesday said the transfer of the 110-megawatt (MW) Pinamucan diesel power plant from Batangas to Dingle, Iloilo is nearing completion with the first generation units expected to be operational by the end of the month.

"We are targeting to put the first two units online by the end of February, and another two units by the end of March. We hope to have the entire 110 MW of the power plant in place and operational by the end of May this year," NAPOCOR president and chief executive Rogelio M. Murga said.

I'm flagging the whole artile so I can return to it later in the event the weblink goes dead. This is the kind of client I want.

Monday, October 25, 2004 11:17 PM
BUSINESS


Make sure big projects have enough collateral–Concepcion

By LAWRENCE AGCAOILI and LENIE LECTURA
TODAY Reporters

Industrialist and consumer advocate Raul Concepcion Monday said the government should make sure that investors in big-ticket projects that involves sovereign guarantees should have enough collateral to absorb the debt, in case these projects are abandoned.

Concepcion told reporters Monday that all infrastructure projects and public utilities affecting consumers should be covered by enough collateral so that the government would not absorb the debt once the proponents decide to abandon the project.

“When sovereign risk is involved, the government must make sure that investors have enough collateral to be used to absorb the debt should they decide to abandon the project,” he stressed.

He cited the P598-billion losses of the state-run National Power Corp. (NAPOCOR), the P8.5-billion unpaid concession fees and the $800-million assumed debt of the Lopez-controlled Maynilad Water Services Inc., among others, which he said would penalize consumers with higher power and water rates.

He pointed out that his group, the Consumer and Oil Price Watch, would work closely with the economic managers, regulatory agencies, the National Economic and Development Authority (NEDA), as well as various committees in both the Senate and the House of Representatives.

He added that the price watch would focus on issues, such as electric power, the privatization of the National Transmission Corp. (TRANSCO), rising domestic shipping rates, higher toll fees both at the North and South Luzon expressways, the rising fares for MRT and LRT passengers.

Concepcion said the rationale of a sovereign guarantee should only be acceptable when the projects involved have passed the litmus test of project viability, wherein true costs are reflected and the government would not absorb any debt from the start to the completion of the project.

He stressed that the primary reason for the huge financial debt of the Philippines is the major projects approved by the NEDA-Investment Coordinating Committee in the previous administrations.

He explained that the sovereign risks in these projects were not communicated or explained clearly to the public from the start.

Due to the country’s ballooning budget deficit, the consumer advocate said there is no other recourse but to approve pending petitions for increases in the cost of basic services so that the Philippine economy would get back on track.“Therefore, we have to accept pending petitions for increases in the cost of basic services in order to reflect their true cost and there is no choice but to reduce the growing budget deficit in order for our economy to get back on track,” he added.

The government expects this year’s budget deficit to hit P197.8 billion from P199.8 billion last year. The country’s budget deficit rose to P141.9 billion for the period covering January to September this year.

Concepcion also called on the government to be transparent in its dealings with prospective investors interested to take part in the privatization of the NAPOCOR.

Specifically, he wants the identities of the interested bidders disclosed and the tag price of each generating asset of the NAPOCOR.

Also, Concepcion wants the bids for the transmission business and the generating assets to be evaluated by a foreign party.

“They [Power Sector Assets and Liabilities Management Corp., or Psalm] should announce who submitted bids. They should get an international institution to assist them in evaluating the bids. We are working closely with [Psalm] to ensure that the privatization of TRANSCO is transparent and the safeguards that will guarantee maximum value to the government are in place.”

“Once NAPOCOR obligations that were absorbed by Psalm have been stabilized, we want a commitment from Psalm as to when the profits will be plowed back to the consumers in the form of lower power costs,” Concepcion said.

He added that his group is closely working proactively with the NAPOCOR, Manila Electric Co., Psalm, the Energy Regulatory Commission and the Department of Energy in order to be informed of the issues in the power sector.

“We have received positive response from Psalm president Raphael Lotilla. We hope that we will put in black and white all that we have agreed and discussed during our meetings,” he said.

Western-style power markets are likely to flop in Asia - Article

Daily Times - Site Edition

ERC grants Napocor 40% rate increase

ABS-CBNNEWS.COM: "ERC grants Napocor 40% rate increase

By LENIE LECTURA"

R.P. hopes to privatize power grid by Dec

ABS-CBNNEWS.COM: "R.P. hopes to privatize power grid by Dec"

About Global Policy Forum

I need to look into this org more closely. They seem somewhat aligned with some of my interests in the Philippine power sector.

Daily Times - Politics pulling plug on Philippines electricity plan

Another interesting article.

About ACE

Is ACE defunct? The home page is 404.

Electricity Governance

Just found this presentation (from April '04?) by Lando and Zarky. Cool. A good starting point. I'd really like to leverage off this - I have a number of thigs to say along these lines.

Morningstar - Dow Jones & Company, Inc.: Philippines Amends Napocor Privatization Schedule

Morningstar - Dow Jones & Company, Inc.: Philippines Amends Napocor Privatization Schedule

Morningstar - Dow Jones & Company, Inc.: Philippines: ADB Offers Financial Help To Avert Power Crisis

Morningstar - Dow Jones & Company, Inc.: Philippines: ADB Offers Financial Help To Avert Power Crisis

Hmmmmm.... don't miss this quote: "...but it would like to first see some progress in the power sector's restructuring."

The ADB has had a history of pressuring the national government. I don't mean subtle pressuring, but hard hitting and overt. Just read one of the loan agreements and the terms therein.

The ADB, like USAID and the World Bank, pushes a policy agenda that is separate from pure "development aid" and their policies should be a subject of more open discussion and debate among the leadership of various stakeholders than what I've obeserved over the past years.

"Judiciary at it again" Op-Ed ABS-CBNNEWS.COM

ABS-CBNNEWS.COM:
Without comment as to whether this is judicial interference or not, there are some important legal/administrative issues to be cleared up here.

Electric coops hike rates without consultations - INQ7.net

Electric coops hike rates without consultations - INQ7.net

FT.com Ruling raises fears for Manila's efforts to privatise power assets

FT.com / Industries / Utilities

TransGrid Austrailia

Here's a nice clarification on Australia's TransGrid's interest in TransCo.

Napocor takes over steam plant

Napocor takes over steam plant

Official Philippine Government Portal

I got to link to this. It's the official government web portal to the power sector agencies. It's extremely well done.

What's this $2.11 M electricity consultancy contract?

This is a fair question that the Sassy Lawyer asks. The answer is not easy nor clear. But a very very good question.

She clearly doesn't know what the wholesale market is - nor should she, necessarily. Her question devolves to "will ratepayers see direct benefits from the implementation of the wholesale market that are greater than the costs of its implementation?

That is a question I hope to address here....eventually.

Napocor justifies hike - Jun. 27, 2004

Napocor justifies hike - Jun. 27, 2004

Gov't may convert B-O-T Napocor deals to B-O-O

Gov't may convert B-O-T Napocor deals to B-O-O

Electricity rates to soar - Jun. 26, 2004

Electricity rates to soar - Jun. 26, 2004

Budget gap still Macapagal's big challenge -- economist

Budget gap still Macapagal's big challenge -- economist

Lessons Learned. The Center for Public Integrity

Power sector lessons to be learned from "The Water Barons" and the World Bank approach.

Just a single quickie, for now:

Regulatory authority over concessionaire - afterall, the concessionaire is not a "public utility".

Manila to take on $8.9bn Napocor debt - FT.com

FT.com / Business / Asia-Pacific

Philippines To Absorb Napocor Debt Despite Budget Impact

Philippines To Absorb Napocor Debt Despite Budget Impact

BusinessWorld Online

BusinessWorld Online

5 Japan firms keen on geothermal projects

5 Japan firms keen on geothermal projects

PHILIPPINES PRESS: Govt Allows Napocor To Raise Charges

PHILIPPINES PRESS: Govt Allows Napocor To Raise Charges

KEPCO to build 200 MW coal-fired power plant in RP

KEPCO to build 200 MW coal-fired power plant in RP

Philippine Energy Sector Stirs Interest Of Foreign Cos

Philippine Energy Sector Stirs Interest Of Foreign Cos: "J"

ERC HOLDS NATIONAL WORKSHOP ON DU SYSTEM LOSS CAP ESTABLISHMENT

Energy Regulatory Commission: "ERC HOLDS NATIONAL WORKSHOP ON DU SYSTEM LOSS CAP ESTABLISHMENT"

ERC ADJUSTS GENERATION CHARGE OF NPC

Energy Regulatory Commission: "ERC ADJUSTS GENERATION CHARGE OF NPC"

Distribution Planning Databank

Distribution Planning Databank: "New ERC Directive: Distribution Planning Databank of Meralco Large Customers"

Meralco issues clarification on latest

Industry Info: Industry News: "Meralco issues clarification on latest
GRAM order"

SunPower Philippines Plant Delivers First Solar Cells

SunPower Philippines Plant Delivers First Solar Cells; Two Months from Plant Inauguration to First Silicon; Ramping for Mass Production in 2H04: "SunPower Philippines Plant Delivers First Solar Cells"

Purpose of Site

I'm setting up this site primarily to generate and RSS Feed for Philippine Electricity Sector issues, since I couldn't find an RSS feed for that elsewhere.

So, feel free to subscribe to the feed if you are interested.