Will Manila Electric deal be enough to entice buyers?

Manila Electric Co. agreed to a five-year contract to buy power from government power plants, aiding the state in selling its plants, BusinessWorld newspaper reported, citing National Power Corp. President Cyril del Callar.

The government will attach the supply contract to 600-megawatt coal-fired plants in Masinloc, Zambales, and in Calaca, Batangas, the newspaper reported, citing Nieves Osorio, president of Power Sector Assets and Liabilities Corp., or PSALM.

Manila Electric is the nation's largest power retailer. President Jesus Francisco and spokesman Elpi Cuna didn't immediately reply to mobile phone messages seeking their comments. National Power is the government's power generating company, while PSALM is in charge of selling its assets.

Keeping in mind that a 2004 auction for the Masinloc plant drew only two bidders, which the government voided after the top bidder missed payment deadlines, will the Manila Electric deal be lucrative enough to attract more buyers for the state's power plants?