Manila Times.net
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STATE-RUN Power Sector Assets and Liabilities Management Corp. (PSALM) said eight prospective bidders have expressed interest in managing the output of the Naga power plant complex in Cebu.
“These investor groups are a mix of new and old participants in the power industry, some of which have formerly participated and have won in previous bidding exercises,” Emmanuel Ledesma, PSALM president and chief executive officer, said.
The complex consists of the 106.8-megawatt coal thermal power plants 1 and 2, and a 39-MW diesel power plant—all of which are in Naga town.
The plants are under a Rehabilitate-Operate-Maintain-and-Manage Agreement/Energy Conversion Agreement with Kepco Salcon Philippines Corp. The contract is set to expire on March 2012.
The winning bidder for the Naga complex will take control of the power plants’ contracted output as independent power producer administrator.
Ledesma said a number of private entities that intend to enter or expand their investments in the power industry are interested in the Naga complex.
“The Naga IPPA is actually a low-cost, low-risk technique of entering the Visayas electricity market,” he said.
The auction of the asset marks the resumption of the government’s power sector privatization program under the Electric Power Industry Reform Act of 2001.
Last Friday, PSALM conducted a pre-bid conference for the Naga complex.
The deadline of bids is at 12 noon of October 10.
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