Green Core gives highest for Palinpinon-Tongonan plants

Green Core Geothermal Inc. gave the highest bid for the 192.5-megawatt Palinpinon and 112.5-MW Tongonan geothermal power plants with $220-million. The amount also met the reserve price set by the Power Sector Assets and Liabilities Management Corp., according to its spokesperson Conrad Tolentino.

The highest bidder is a wholly owned subsidiary of First Luzon Geothermal Energy Corp. which, in turn, is wholly owned by Energy Development Corp. Green Core was established to bid for the government power assets.

Therma Power-Visayas Inc.. a unit of the Aboitiz group, submitted a bid of $200 million.

As required under the bidding procedures, PSALM has to first verify the accuracy, authenticity and completeness of the bid documents submitted by Green Core before a winning bidder for the Palinpinon-Tongonan package is formally declared.

The privatisation of the plants is in line with PSALM's mandate to sell state-owned National Power Corp. assets to pay off the latter's debts and spur competition in the sector.

The Palinpinon geothermal power plant in Negros Oriental has two power stations while the Tongonan geothermal power plant in Leyte consists of three 37.5-MW units commissioned in 1983.

Both plants use steam supplied by Lopez-led Energy Development Corp., which wholly owns First Luzon Geothermal.