PSALM may award Malaya O&M contract to single bidder

business mirror

THURSDAY, 08 SEPTEMBER 2011 20:50 PAUL ANTHONY A. ISLA / REPORTER

THE Power Sector Assets and Liabilities Management Corp. (PSALM) has 10 to 14 days to determine if it will award to SPC Power Corp. the operation and maintenance (O&M) contract of the 650-megawatt Malaya thermal power plant in Pililia, Rizal.

In a telephone interview, Conrad Tolentino, PSALM vice president for asset management and electricity trading, told the BusinessMirror that SPC Power was the sole bidder which submitted a bid for the O&M contract to PSALM on September 5.

Tolentino said SPC Power is a joint venture between Salcon Light and Salcon Power Corp.

Tolentino said SPC Power is now undergoing post-qualification process. The O&M contract, Tolentino said is likely to be awarded if SPC Power if it could be able to comply with the post qualification process and meet requirements set by PSALM.

He added that the post qualification process usually takes 10 to 14 days.

Tolentino earlier said the O&M contract is targeted to keep the Malaya running while it remains unsold.

As to the sale of the power plant, Tolentino said PSALM still awaits the Department of Energy’s (DOE) go-signal to proceed with the sale.

The 650-MW Malaya is operated by Kepco under a rehabilitate, operate, maintain and management agreement with the government through the National Power Corp. (Napocor).

To date, Psalm has privatized 68.7 percent of the total contracted capacities of the Luzon and the Visayas grids to the independent power producer administrators.

PSALM generated $3.467 billion from the sale of the generating assets and $3.23 billion from the IPP contracts.