Aug 212013
 

MANILA, Philippines – The Power Sector Assets and Liabilities Management Corp. (PSALM), the agency tasked to oversee the privatization of the government’s power assets, will review the terms for the sale of the 153.1-megawatt Naga Plant in Cebu  after last month’s failed bidding.

An official said the government would have to “review the price” as it may be too high to attract investors.

“PSALM will assess if the price is attractive enough,” the official said, adding that the agency would again try to resell the plant this year.

“PSALM will try to do another round of bidding this year,” said the source who declined to be identified due to the sensitivity of the issue.

In July, the PSALM Bids and Awards Committee (PBAC) declared a failure of bidding for the Naga plant after only one bidder submitted documents deemed compliant by the committee.

“Pursuant to the bidding procedures, should only bidder submit documentary deliverables that is deemed compliant by the PBAC, there shall be a failure of bidding,” PSALM said in a notice issued last month.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

Under the original terms, the winning bidder will be required to issue a P93.86 million performance bond to PSALM.

Sources said the failure of bidding was not expected after four groups earlier expressed interest in bidding for the plant.

DMCI Holdings Inc., the Aboitiz Group, D.M. Wenceslao and SPC Power Corp. joined the pre-bid conference for the Naga Plant privatization.

The Naga complex in Cebu is composed of three thermal power plants that use a combination of diesel, bunker C oil and coal as fuel.

As of December 2011, PSALM’s privatization proceeds from the sale of generating assets, decommission plants, transmission assets and appointment of independent power producer administrators have reached $10.210 billion.

Apr 252013
 
AboitizPower to build 2 more hydro plants

MANILA, Philippines – AboitizPower subsidiary Hedcor is adding two more hydropower plants in its portfolio, a move seen to help curb the ongoing power crunch in Mindanao. The company yesterday announced that it would be building two cascading plants in Bukidnon, which would be tapping power from the Amusig, Guihean and Tanaon rivers. The first plant, the Manolo Fortich Hydro 1 will have a capacity of 35.2 megawatts while the second plant, the Manolo Fortich Hydro 2 will generate 16.4 MW. The two plants combined can produce a total of almost 300 million kWh a year, Hedcor said. The projects have received support from the local government of Impasug-ong and the barangay chairman of Guihean, which are both in Bukidnon. The local officials called on local residents to support the hydro investor in their community during the official signing of the Memorandum of Agreement (MOA) among the local officials and the AboitizPower subsidiary, Hedcor on the project. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Hedcor needs the full support of the community, we have to ensure the safety of our investors against any unfavorable incident. The project will help ease the power crisis in Mindanao,” said Impasug-ong Mayor Mario Okinlay said. He said the community needs Hedcor’s additional capacity to reduce the brownouts they currently experience in their area. Hedcor vice president for business development Boy Jabonillo said the company strives to bring inclusive growth to the host communities by helping them with sustainable social development programs. Other Read More …