Monday, September 12, 2011

PSALM to re-bid Malaya thermal plant O&M

Manila TImes.net
Monday, September 12, 2011 00:00 Written by : EUAN PAULO C. AÑONUEVO


STATE-RUN Power Sector Assets and Liabilities Management Corp. (PSALM) plans to rebid the contract to operate and maintain the Malaya thermal plant.


Emmanuel Ledesma, Psalm president, told reporters that the facility’s lone bidder, SPC Power Corp., failed to submit a documentary requirement.


“Psalm will rebid the Malaya O & M agreement by next month,” he said.


The 650-megawatt Malaya diesel plant is operated by Korea Electric Power Corp., whose contract would lapse once a new operator is assigned by the government.


Psalm announced in August that it was bidding out the O&M contract for the Malaya plant for P716.8 million in early September.


The plant’s contracted capacity was also supposed to be bid out last year but the bidding was declared a failure after only First Gen Corp. submitted an offer.


“We received direction from the board to retain it in the meantime. This has been the decision taking into account various factors affecting the grid,” Ledesma said.


Under the Electric Power Industry Reform Act of 2001, Psalm is tasked to privatize National Power Corp.’s assets and use the proceeds thereof to settle the latter’s debts.


As of 31 December 2010, an estimated $4.85 billion was collected out of the privatization program, with $4.84 billion used to pay down Napocor’s obligations.


Collection of the remaining privatization proceeds amounting to $16.07 billion, including interest, will continue until 2029.

No comments:

Post a Comment