Power firm ICS Renewables Inc. is planning to take over the Amlan hyrdrothermal plant and start its rehabilitation on February 15 this year.

Company president Juan Eugenio Roxas told Sun.Star that they would initially invest P15 million to boost the output.

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Roxas, a native of Dumaguete City, said the company needs about three years to upgrade the plant, which will cost P45 million.

He explained that the company will spend P45 million to rehabilitate the 800-kilowatt Amlan hydroelectric plant in Negros Oriental and restore its original capacity.

The Amlan hydrothermal plant is currently producing 30 percent of its original capacity.

"What we want to do now is to rehabilitate it to restore its rated capacity," he said.

The Filipino company, which produces alternative fuels, won the bidding for the plant last month for $230,000 (P11.2 million).

ICS Renewables Inc. became the official owner of the Amlan hydrothermal plant after it was awarded a notice of award and certificate of effectivity by the Power Sector Assets and Liabilities Management Corporation (Psalm).

Roxas said the company obtained the certificate few weeks ago, signaling the effectivity of its asset purchase deal and the start of the 270-day deadline for the Psalm and ICS Renewables Inc. to complete their deliverables and meet the conditions of the sale.

Under the deal, he said, ICS Renewables must put up a performance bond of $23,000, equivalent to a tenth of the purchase price, within 10 days.

The firm also manages properties for alternative fuels and other environment-friendly equipment, he said.

Amlan Mayor Bentham dela Cruz, in a separate interview, said the plant in Sitio Pasalan, Barangay Silab is the first power facility to be built in the province.

It is designed to operate as a base load plant, supplying power to the town of Amlan and nearby villages, he said.

The sale of the Amlan hydrothermal plant allowed the government to exceed its 70 percent target privatization level for assets of the National Power Corporation (Napocor) in the Luzon and Visayas grids. The level now stands at 73 percent.

The Amlan hydrothermal plant highlighted the government's successful power privatization program for 2008.

Republic Act 9136 or the Electric Power Industry Reform Act (Epira) of 2001 mandates the sale of Napocor assets to pave the way for retail competition in the power industry.

Psalm achieved its 2008 privatization goal after successfully selling the 146.5-MW Panay and 22-MW Bohol power plant package last November.