Nov 012013

MANILA, Philippines – The Power Sector Assets and Liabilities Management Corp. (PSALM), the agency overseeing the government’s power assets, has moved anew the bidding for the 153-megawatt Naga power plant and the Unified Leyte contracts, officials said.

The bidding, which was already moved to last month, has been rescheduled to Nov. 8 for the Naga facility and on Nov. 7 and 8 for Unified Leyte.

The decision to move the bidding came after interested parties requested for more time to prepare their offers.

PSALM targeted to rebid the Naga facility on Oct. 15, then on Oct. 30, after a failed attempt to sell the plant last July.

Three investor groups have expressed interest in bidding for the power asset.

PSALM said the second round of bidding attracted SPC Power Corp., Therma Power Visayas Inc., and RD Corp.

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All three groups have completed the initial requirements for the bid, including the submission of a letter of interest, the payment of a non-refundable participation fee of P120,000 and the execution and submission of a confidentiality agreement and undertaking with PSALM.

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 in Cebu, the facility 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 1 composed of six 7.3-MW bunker oil power units.

PSALM, meanwhile, has said that 21 companies have expressed interest to administer the power capacity of the Unified Leyte geothermal power complex in Tongonan, Leyte.

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 have reached $10.21 billion.

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