DOE applauds PSALM for achieving remarkable success in Casecnan Plant's sale

The Department of Energy lauds the Power Sector Assets and Liabilities Management Corporation (PSALM Corporation) for the efficient and successful public bidding of the 165-megawatt Casecnan Hydroelectric Power Plant (CHEPP). At the bidding held on 16 May 2023, PSALM secured the highest bid from Fresh River Lakes Corporation amounting to USD 526,000,000.00. Additionally, notable bids were received from the consortium of EEI Power Corporation, Soosan ENS. Co. Ltd., Soosan Industries Co. Ltd., and Mapalad Power Corporation amounting to USD 298,899,999.00 and Neptune Hydro Inc. amounting to USD 258,000,000.00.

PSALM is an integral part of the government’s ‘energy family’ overseen by the DOE. As an attached agency, PSALM reports to the DOE which provides direct supervision over all energy-related programs, projects, and activities, including the restructuring of the electricity industry.

“The successful privatization of this crucial power plant represents a significant milestone in our efforts to strengthen energy security. With the private sector injecting the necessary efficiency and capital for energy expansion, we can ensure a reliable and resilient energy sector for our nation’s future,” DOE Secretary, Raphael Perpetuo M. Lotilla, said.

The winning bid from Fresh River Lakes surpassed the minimum bid price of the CHEPP, which was determined by the PSALM Board to be USD 227,272,727.28. Further, Fresh River Lakes will undergo a rigorous post-qualification process to verify the accuracy and authenticity of the eligibility documents submitted.

The PSALM Board is chaired by the Department of Finance (DOF) with the DOE as Vice-Chairman. Its members include the Department of Budget and Management (DBM), National Economic and Development Authority (NEDA), Department of Justice - Philippines (DOJ), Department of Trade and Industry (DTI Philippines) and PSALM.

Initially, eight (8) bidders were qualified to participate in the bid opening and preliminary evaluation process.

The CHEPP is a run-of-river type of power facility with limited impounding located in Barangay Villarica, Pantabangan, Nueva Ecija. Following the conclusion of the build-operate-transfer agreement between the California Energy (CE) Casecnan Water and Energy Co. Inc., and the National Irrigation Administration (NIA) on 11 December 2021, the management of CHEPP was transferred to the government. PSALM and NIA share ownership of the plant on a 60 percent and 40 percent arrangement, respectively.