SPUG Privatization Program Updates/Developments


On 12 February 2004, the DOE issued Department Circular No. DC 2004-01-001: Prescribing the Rules and Procedures for Private Sector Participation (PSP) in Existing NPC-SPUG Areas. The Circular is pursuant to Rule 13 of the Implementing Rules and Regulations of the Electric Power Industry Reform Act of 2001 (EPIRA-IRR) and is premised on the following:


  1. Declared policy of the State to ensure and accelerate the total electrification of the country.
  2. DOE’s mandate to issue specific guidelines to encourage the inflow of private capital through participation in missionary electrification.
  3. NPC-SPUG’s mandate to periodically assess the prospect of bringing power facilities to commercial viability and encourage private sector participation thereat.
  4. Reduction of the burden of UC-ME whose missionary electrification component is used to fund such function of NPC-SPUG.

The SPUG areas shown in Table 1 below were opened for the Private Sector Participation (PSP) program of the DOE.



Table 1

1st Wave Areas for PSP
1. Occidental Mindoro 8. Tablas
2. Oriental Mindoro 9. Romblon
3. Marinduque 10. Camotes
4. Mainland Palawan 11. Siquijor
5. Catanduanes 12. Tawi-Tawi
6. Bantayan 13. Basilan
7. Masbate 14. Sulu

As of December 2007, the New Private Providers (NPP) that have entered some of these areas are:


Table 2

New Private Providers

Areas
Power One Corporation Oriental Mindoro, Catanduanes and Southern Palawan
Bantayan Island Power Corporation Bantayan
3i Powergen Marinduque, Tablas and Romblon
D. M. Consunji Holdings (DMCI) Masbate

The International Finance Corporation (IFC) is preparing for the bidding of the 3rd batch of PSP comprised of the three (3) Mindanao islands of Sulu, Basilan and Tawi-Tawi. Table 3 shows the prospective schedule of the bidding for Basilan. The IFC is the transacting advisor of the DOE, PSALM and NPC on PSP implementation.


Table 3

1. Prep of bid docs: Feb-Mar '08

2. Transaction launching: Jan '08

3. Investor's consultation: Jan-Feb '08

4. Prequalification: Mar '08

5. Tender launching: Apr '08

6. Award/closing: May-Jun '08

In July 2007 the National Power Board through Resolution No. 2007-46 approved the opening to private sector participation the sixty one (61) other areas of SPUG. The list of the areas recently opened to PSP implementation is shown in Table 4.


Table 4
Sixty One (61) Additional SPUG Areas Opened to Private Sector Participation

Other Luzon Areas

Peak Dem.

Subsidy

 Other Visayas Areas

Peak Dem.

Subsidy

(29 Plants)

(kW)

(Th PhP)

 (15 Plants)

(kW)

(Th PhP)

1

Agutaya

60

3,349.14

30

Almagro

80

3,374.12

2

Araceli

112

4,146.59

31

Biri

140

3,791.74

3

Balabac

100

4,496.29

32

Caluya

120

4,702.90

4

Banton

140

4,538.16

33

Capul

130

4,210.91

5

Basco

752

84,969.97

34

Doong

118

4,804.46

6

Batan

201

4,679.55

35

Gigantes

81

3,956.70

7

Busuanga

760

55,331.12

36

Guintarcan

58

3,955.99

8

Cagayancillo

70

2,593.36

37

Limasawa

126

4,179.48

9

Calayan

118

5,772.14

38

Maripipi

155

4,378.31

10

Casiguran

910

24,036.01

39

Pilar

240

5,194.06

11

Concepcion

135

4,683.84

40

San Antonio

191

5,706.75

12

Corcuera

240

6,464.42

41

San Vicente

70

3,227.70

13

Culion

290

7,420.85

42

Sto. Nino

80

3,406.18

14

Cuyo

680

32,908.89

43

Tagapul-an

67

3,590.77

15

Itbayat

93

5,226.16

44

Zumarraga

230

6,038.57

16

Jomalig

74

4,092.41

 Other Mindanao Areas

Peak Dem.

Subsidy

17

Kabugao

170

13,219.95

  (17 Plants)

(kW)

(Th PhP)

18

Linapacan

48

4,239.64

45

Abad Santos

210

5,848.80

19

Lubang

575

24,602.47

46

Balimbing

150

5,782.85

20

Lubuagan

88

7,300.61

47

Balut

120

4,767.91

21

Palanan

120

5,565.41

48

Cag. de Tawi2

250

6,471.14

22

Patnanungan

160

5,468.64

49

Dinagat

1,220

38,353.60

23

Polilio

1,004

26,730.55

50

Hikdop

115

5,996.93

24

Rapu-Rapu

450

8,646.42

51

Kalamansig

1,400

73,719.13

25

Sabtang

87

4,807.98

52

Loreto

290

7,573.43

26

San Jose

160

3,366.48

53

Luuk

42

 

27

Sibuyan

918

25,084.20

54

Manuk Mangkaw

80

4,320.10

28

Ticao

910

24,383.33

55

Ninoy Aquino

155

6,042.64

29

Tingloy

450

8,048.37

56

Siasi

600

21,406.48

 

 

 

 

57

Sibutu

240

5,029.18

 

 

 

 

58

Sitangkay

220

1,180.35

 

 

 

 

59

Talicud

160

5,365.15

 

 

 

 

60

Tandubas

69

3,100.58

 

 

 

 

61

West Simunul

220

5,435.19