The Philippines expects to raise around $1.5 billion this year by selling power generating assets with a combined capacity of over 1,000 MW, according to Jose Ibazeta, president of the Power Sector Assets & Liabilities Management Corp. (PSALM).

The government hopes the sales, along with about $1.9 billion proceeds from the privatization of three power plants in 2007, would allow the Philippines to step up its power-related debt repayment program.

"This year, probably a ballpark of about $1.5 billion," Ibazeta said of power plant sales this year. "There’s a lot, especially small bunker (plants), but the big ones are Tiwi-Makban, Palinpinon and some hydropower plants."

"That’s a total of over 1,000 megawatts," he said.

The Philippines is selling its generation assets as part of a power privatization plan aimed at raising around $5 billion to cut its debts, boost state coffers, and attract badly needed investment into the decrepit energy sector.

PSALM has set a June 4 bidding for Tiwi and Makban, two geothermal plants to be sold as one package and with a combined capacity of 747.5 megawatts.

The facilities, located south of the capital Manila, were first commissioned in 1979 and were initially put up for sale in 2005. PSALM later withdrew the bidding to make way for changes in the bidding process.

The sale of Tiwi-Makban, which generates power from volcanic hot springs, includes its generation and steam field facilities and the sales contract between PSALM and Philippine Geothermal Inc, now known as Chevron Geothermal Philippines Holdings Inc.

A prebid conference for Tiwi-Makban is set on April 2.

The 192.5 MW Palinpinon geothermal plant is up for sale in August. The facility located in the Negros Oriental province south of Manila was first commissioned in 1983.

The government has yet to decide if it will sell Palinpinon as one package with the 146.5 MW Panay and 22 MW Bohol plants, which the government had difficulty selling previously because the facilities were diesel-fired and unattractive to investors.

The government wants to sell the Panay and Bohol plants in July if the final decision would be to sell them separately from Palinpinon. The three plants are in the central Visayas region.

PSALM, which also manages the debt of state generation firm National Power Corp (Napocor), has said it wants to repay ahead of schedule or refinance $2.4 billion, a third of the firm’s total debt of $7.0 billion in various currencies.