A 72-hour Temporary Restraining Order issued by Presiding Judge Venancio Amila of the regional trial court branch III failed to stop the Power Sector Assets and Liabilities (PSALM) from bidding the 22-MW Bohol Diesel Plant in Dampas district, this city.
In the bidding held last Wednesday, the power plant was considered part of the package that was bidded. The bigger Panay 146.5 megawatt was included in the package as the main component with the winning bid amounting to $5.96 million. The bid amount of the Dampas plant was not known but when it was bidded all alone two years ago, there was no taker, according to sources close to the winning bidder the SPC Power Corp. formerly known as Salcon Power Corp..
The company bested two other bidders: Aboitiz Power Corp. subsidiary Therma Power-Visayas and Philippine Investments Management Inc. unit Trans-Asia Oil and Energy Development Corp.
In a statement, PSALM said Wednesday’s bidding almost did not push through, following its receipt of a temporary restraining order that sought to defer the auction of the Bohol facility.
The TRO as issued by Judge Amila was in response to a petition filed by Tagbilaran City Mayor Dan Neri Lim
However, PSALM decided to push through with the bidding, citing Section 78 of RA 9136, or the Electric Power Industry Reform Act of 2001, which stated that “only the Supreme Court may enjoin the implementation of the provisions of the Epira.”
The bidders were properly informed of the TRO, PSALM said.
PSALM is considering taking further legal action “to preserve the integrity of the government’s power privatization program.”
PSALM said the successful bidding for the generation facilities brought the privatization level of National Power Corp.’s Luzon and Visayas capacities to more than 70 percent.
This fulfilled one of the last two remaining requirements for the implementation of retail competition and open access.
The only unfulfilled requirement now is the transfer of at least 70 percent of capacities under Napocor’s independent power producer contracts to IPP administrators.
In filing for a TRO, Mayor Lim expressed fears that the city would experience high electric bills with the sale of the local plant.
But he was assured in a call by Energy Sec. Angelo Reyes of the department of energy that there will be no increase in electric rates in Bohol even if the winner was the Salcon Group. The power firm controls the Bohol Light Co., the electric service provider of this city.
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