(The Philippine Star) | Updated January 8, 2017 - 12:00am
MANILA, Philippines – State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is seeking offers for P686 million worth of fuel requirements to run the government-owned Malaya Thermal Power Plant this year.
In a notice, PSALM said it is bidding out a one-year contract for the supply and delivery of industrial fuel oil for the 650-megawatt (MW) Malaya plant.
The state-run firm has approved a budget of P686.41 million for the contract.
The auction will be conducted through open competitive bidding procedures using a non-discretionary “pass or fail” criterion.
PSALM has set a pre-bid conference on Jan.6 for interested parties who will need to purchase bidding documents from PSALM and pay a non-refundable fee of P75,000.
Interested parties are required to make their respective offers on or before 10 a.m. on Jan.18.
PSALM said it reserves the right to accept or reject any bid, to annul the bidding process, and to reject all bids at any time prior to contract award, without thereby incurring any liability to the affected bidder or bidders.
PSALM, formed by the 2001 Electric Power Industry Reform Act, is the state firm in charge of privatizing government power assets as well as managing National Power Corp.’s power plants and debt. It buys the fuel requirements of state-owned power plants.
The 650-MW Malaya plant, located in Rizal, is being eyed to run during the Malampaya shutdown from Jan. 28 to Feb.16, 2017, Department of Energy (DOE) Undersecretary Felix William Fuentebella said earlier.
During the Malampaya shutdown, the Luzon grid will lose around 1,850 MW in capacity as some plants using natural gas will run on diesel and run at a derated capacity, while three power plants namely the 200-megawatt Calaca Unit 1, 456-MW Quezon Power Philippines Ltd. Co. plant and the 600-MW Ilijan Block 1 will be on scheduled shutdown during that time.
Managed by PSALM, the power plant was designated as a must-run unit (MRU) by the DOE to address supply deficiency when operating power plants in the grid suddenly bog down or become unavailable.
It will operate as an MRU until the DOE finalizes its privatization schedule.