Thursday, February 4, 2016

PSALM readies 2nd Sucat plant auction



posted February 02, 2016 at 11:40 pm by  Alena Mae S. Flores

Power Sector Assets and Liabilities Management Corp. is pursuing the second round of bidding for the decommissioned 850-megawatt Sucat Thermal Power Plant this month.
“Target bidding is [this] month,” PSALM officer-in-charge Lourdes Alzona said. PSALM earlier set the bidding deadline on February 17.
Ten of the 12 prospective bidders participated in the pre-bid conference during the second round of auction for the structures, plant equipment, auxiliaries and accessories of the decommissioned Sucat plant in November.
“PSALM is pleased with the interest shown by investors in this privatization activity, which is among the highly participated disposal initiatives of the corporation. It has attracted 12 prospective bidders, two of which are foreign companies. We are appreciative of the continued enthusiasm of the private sector for the government’s privatization program,” said PSALM vice president and general counsel Cecilio Gellada Jr. earlier.
PSALM plans to use the proceeds from the Sucat privatization to liquidate the financial obligations it assumed from National Power COrp..
Gellada, meanwhile, assured the participants the bidding processes would be efficient, fair and transparent.
The first round of bidding failed last year amid allegations of dubious documents submitted by the winning bidder.
PSALM earlier said Genetron International Marketing, a Bulacan-based chemical manufacturer, submitted the highest bid of P602 million for the decommissioned power plant.
More than 100 employees of PSALM in a petition raised questions on the March bidding last year and called for the removal of the former PSALM head for not taking immediate action against the higher bidder.
Genetron was required to submit a performance bond amounting to P301 million after the issuance of the certificate of effectivity. PSALM employees, in their petition, claimed Genetron allegedly submitted a fraudulent performance bond in the form of a standby letter of credit, supposedly issued by JP Morgan Chase Bank.
PSALM is selling all plant equipment, structures, auxiliaries and accessories of the Sucat plant on an “as is, where is” basis.
Located in Sucat, Muntinglupa City, the Sucat plant is an oil-fired power station that was previously owned by Manila Electric Co. and later acquired by Napocor 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 facility officially started commercial operations on August 1, 1968 after the completion of Unit 1.
Units 2, 3 and 4 started operating in 1970, 1971, and 1972, respectively. In January 2000, Units 1 and 4 were decommissioned and placed under preservation, while Units 2 and 3 were shut down in January 2002.

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