MANILA, Philippines – The bidding for the 153.1-megawatt Naga power plant – the second attempt this year – failed anew after only one entity submitted a bid, the Power Sector Assets and Liabilities Management Corp. (PSALM) said yesterday.
Only SPC Power Corp. submitted a bid during yesterday’s bidding, prompting PSALM to declare the second round of bidding as a failure.
Under PSALM’s bidding procedures, its Privatization, Bids and Awards Committee will automatically declare a failure of bidding if only one bidder submits a bid.
“With the result, PSALM said it would consult with its board of directors regarding its plans for the Cebu-based power plants,” PSALM said.
PSALM also failed to sell the plant last July.
For the second round of bidding, three investor groups expressed interest in the power asset. These are SPC Power, Therma Power Visayas Inc., and RD Corp. but only SPC Power proceeded to submit an offer.
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Previously, four groups expressed interest in the Naga power plant, which PSALM tried but failed to sell in July. These are DMCI Holdings Inc., the Aboitiz Group, D.M. Wenceslao and SPC Power Corp.
Located in Colon, Naga City, Cebu, the plant consists of two thermal power plants and one diesel-fired power plant that use a combination of coal, bunker oil, and diesel as fuel.
These plants are the 52.5-MW Cebu 1 and 56.8-MW Cebu 2 coal-fired thermal power plants, and the 43.8-MW Cebu diesel power plant composed of six 7.3-MW bunker oil power units.
As of December 2011, PSALM’s privatization proceeds from the sale of generating assets, decommissioned plants, transmission assets and appointment of independent power producer administrators reached $10.210 billion.