PSALM to bid out 4 gov’t power facilities this year
MANILA, Philippines – Four more government-owned power facilities are up for bidding to the private sector before the year ends, the Power Sector Assets and Liabilities Management Corporation (PSALM) said.
“The remaining plants for privatization this year are Mt. Apo 1 and 2, decommissioned Sucat, and Power Barge 104,” PSALM President Emmanuel Ledesma Jr. said.
PSALM had pre-qualified 9 bidders in the bidding for the independent power producer administrator (IPPA) contract to manage the output of the Mindanao I and II (Mt. Apo 1 and 2) geothermal power plants.
These are Energy Development Corporation (EDC) Mindanao Geothermal Inc., FDC Misamis Power Corporation, GDF SUEZ Energy Philippines Inc., Good Friends Hydro Resources Corporation, SMC Global Power Holdings Corporation, SPC Power Corporation, Therma Southern Mindanao Inc., Trans-Asia Oil and Energy Development Corporation, and Vivant Geo Power Corporation.
The bid submission is set on September 24.
Meanwhile, the Mt. Apo IPPA will manage government’s contracted energies in the Mt. Apo 1 and 2 plants, which generate 390 gigawatt-hours (GWh) and 398 GWh per year, respectively.
The Mt. Apo 1 and Mt. Apo 2 geothermal power plants have a rated capacity of 54.24 megawatts (MW) each, and are located in Kidapawan City, North Cotabato.
Owned and operated by EDC, the power plants were commissioned on February 15, 1997 (Mt. Apo 1) and June 17, 1999 (Mt. Apo 2) under a build, operate, and own contract scheme.
The cooperation period for both plants is 25 years, and it will expire on February 15, 2022 for Mt. Apo 1 and June 17, 2024 for Mt. Apo 2.
Re-bidding decommissioned Sucat plant
PSALM will re-bid the decommissioned 850-MW Sucat thermal power plant.
Ledesma did not say why another auction would take place. He only said that the re-bid has yet to be approved by the PSALM board.
Last April, Genetron International Marketing submitted the highest bid offer of P602 million ($13.73 million) for the Sucat plant.
PSALM is selling all plant equipment, structures, auxiliaries, and accessories of the Sucat plant on an “as is, where is” basis.
Located in Sucat, Muntinlupa City, the Sucat plant is an oil-fired power plant previously owned by the Manila Electric Company, and acquired by the National Power Corporation in November 1978. It consists of Unit 1, which has a rated capacity of 150 MW; Units 2 and 3, each with 200 MW; and Unit 4, which is rated at 300 MW.
Formerly known as the Gardner Snyder thermal plant, the Sucat plant officially commenced commercial operations on August 1, 1968 after the completion of Unit 1. Units 2-4 followed operations after their construction in 1970, 1971, and 1972, respectively.
In January 2000, Units 1 and 4 were decommissioned and placed under preservation. Units 2 and 3 followed later in January 2002.
Failed bid for Power Barge 104
Meanwhile, in October last year, PSALM declared a failed bid for Power Barge 104 because none of the bidders met the reserve price for the asset package.
SPC Island, D.M. Wenceslao & Associates, Inc. and Trans-Asia Oil and Energy Development Corporation submitted bids for Power Barge 104.
SPC’s bid was P45.89 million ($1.05 million*), while Trans-Asia offered P30 million ($684,154.81).
DM Wenceslao & Associates Inc. was disqualified because it failed to meet the legal and technical requirements. – Rappler.com
($1 = P43.85)