Tuesday, July 30, 2013

PSALM bids out P1.2-B Ilijan fuel


Manila Bulletin 
By Myrna M. Velasco 
Published: July 30, 2013 

With the scheduled maintenance shutdown of the Malampaya gas production facility latter part of this year, the Power Sector Assets and Liabilities Management Corporation (PSALM) is now advancing procurement of P1.208 billion worth of fuel supply for the 1,200-megawatt Ilijan gas-fired power facility.
The Ilijan plant will need to shift fuel use to diesel during the gas field’s downtime for routine maintenance around November this year.
While the supply contract of the Ilijan plant is now under independent power producer administration (IPPA) arrangement with South Premiere Power Corporation (SPPC) of the San Miguel group, fuel procurement had remained a responsibility of PSALM – taking cue from its transferred obligations from the National Power Corporation.
PSALM, in its tender notice, has enjoined interested parties to start securing bidding documents on July 26, leading to the scheduled pre-bid conference on August 2 this year. Submission of bids is slated August 14.
The terms of reference specified that “bidders should have completed, within 5 years from the date of submission and receipt of bids, a contract similar to the project” and must be “equivalent to 25-percent of the approved budget cost.”
At auction date, PSALM noted that “bids will be opened in the presence of the bidders’ representatives who (will) choose to attend.”
Apart from the solicited tenders for diesel fuel, the procurement set by PSALM will also cover fuel additives and lubricants.
Energy Secretary Carlos Jericho Petilla told reporters that preparations are already being set for the shutdown of the gas facility, which is the major source of fuel for bulk of the generation units supplying the electricity needs of Luzon grid.
Apart from the Ilijan plant, the two other gas-fired power generation facilities of First Gen in Batangas – the 1,000-megawatt Sta. Rita and 500-MW San Lorenzo plants – are also anticipated to shift to liquid fuels.
During these periods when fuel use shifts are enforced, electricity rates may experience up-ticks because global oil commodities are pricier compared to gas.  source

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