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We deliver on our client's complex needs such as designing a world first innovative power privatisation process

Following the energy crisis in the 1990s the Philippine government put in place an ambitious programme of energy privatization to establish a reliable and competitive energy market. Today, to deliver on one of Asia’s truly competitive power markets, our client, the government agency Power Sector Assets and Liabilities Management (PSALM) Corporation, is charged with managing the process of privatizing the power plants and power offtakes of the national power utility.

Pinsent Masons developed an innovative contract structure for the power offtake privatizations, which ensures the existing rights of contracted parties are protected whilst also making the privatization attractive to the market.  So far this structure has been implemented in the offtake privatization of coal, gas and hydro-electric power plants. But as each asset is unique, in every transaction we use different approaches to account for variations in fuel, plant condition, specific contract terms and to optimize the value to PSALM from the sale process. 

PSALM has valued Pinsent Masons' blend of knowledge on PPAs, tender design, due diligence and legal structuring as well as our ability to contextualize this in the Philippine market. To date, more than 3000MW of capacity has been privatized raising over USD3 billion in revenues. The Pinsent Masons team continues to work with PSALM on the privatisation process.

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