By
Lenie Lectura - October 28, 2019
THE Power Sector Assets
and Liabilities Management Corp. (PSALM) has identified four firms interested
to participate in the second round of bidding for the privatization of the
650-megawatt Malaya Thermal Power Plant and its underlying land. MTPP is
located in Pililla, Rizal.
The four are Panasia
Energy Inc., Phinma Energy Corp, Hill Trench Power Inc. and Therma Central
Visayas Inc. Their representatives attended the pre-bid
conference last week.
“The pre-bid conference
enabled interested bidders to ask questions and request for clarification
relative to the bidding requirements. This is integral to ensuring that the
bidders can eventually submit bids and documents that are responsive to
technical requirements of PSALM,” said PSALM President and CEO Irene
Besido-Garcia.
The MTPP is currently
operational and being dispatched as a must-run unit by the National Grid Corp.
of the Philippines (NGCP). However, per the Department of Energy’s (DOE)
direction, once privatized, MTPP is no longer required to run as an MRU.
The last day for the
Submission of Documentary Deliverables is on November 7, 2019, at 5 p.m. PSALM
will then check the completeness of the submitted documents and announce the
prequalified bidders.
Prior to the bid
submission deadline, the PSALM Board, upon recommendation of the PSALM
Bids and Awards Committee (PBAC), will meet to determine the Reserve Price for
the plant and its underlying land. Qualified bidders will then be informed of
the Reserve Price. The Bid Submission Deadline is set at noon
on November 22, followed by the opening and evaluation of bids on
the same day.
In the event of a
failure of bidding because there is only one bid received, the PBAC will
declare a failure of the second round of bidding. Negotiation with the lone
bidder will immediately commence in accordance with Schedule 8-Negotiation
Procedure of the Bidding Procedures.
Last September 18,
PSALM declared the auction a failure because only one bidder participated.
Under PSALM’s Bidding Procedures, there shall be a failure of bidding if only
one bid is received.
At the start of the
bidding process in 2018, there were 11 companies that submitted to PSALM their
letters of intent to participate in the bidding and purchased the bidding
documents.
After the
prequalification process, there were four bidders declared as qualified to bid,
namely: AC Energy Inc., FGEN Reliable Energy Holdings Inc., DM Wenceslao &
Associates Inc., and DMCI Power Corp.
Only AC Energy formally
submitted a bid.
In a letter, DM
Wenceslao & Associates Inc. informed PSALM of its decision to withdraw from
the bidding, “due to current market conditions and uncertainty of supply of
fuel.”
FGEN Reliable Energy
Holdings Inc. and DMCI Power Corp. did not indicate why they did not submit a
bid.
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