Bidding for Naga power plant fails for second time

Business Mirror

Published on Monday, 26 November 2012 19:32

Written by Paul Anthony A. Isla / Reporter

STATE-RUN Power Sector Assets and Liabilities Management Corp.  (Psalm) said on Friday the bidding of the operation and maintenance service contract (OMSC) for the 145.8-megawatt (MW) Naga power plant complex was declared a failure.

Emmanuel R. Ledesma Jr., president and chief executive, said that Psalm declared the bidding a failure for lack of interested parties after no bidder submitted a proposal for the Naga complex OMSC.

Psalm began the latest round of bidding for the Naga complex OMSC on Oct. 24, 2012, with the publication of the Invitation to Bid. Only one bidder, SPC Power Corp. (SPC), expressed interest in joining the procurement project.

The Naga Complex, which is located in Naga City, Cebu, is currently being operated and maintained by SPC through an OMSC that will expire on Dec. 25, this year.

In June, Psalm also declared the bidding for the P350-million operation and maintenance service contract (OMSC) of the 145.8 MW Naga power plant complex a failure after receiving only one bid.

Psalm said two bidders­—SPC Power Corp. and Trans-Asia Oil and Energy Development Corp. - have been pre-qualified to bid for the OMSC of the Naga power plant complex, but only one had submitted a proposal then.

The first round of bidding for the Naga complex OMSC conducted on Feb. 27, 2012 was also declared a failure because no bid was received by the PSALM Bids and Awards Committee.

Pending the conduct of the re-bidding for a one-year OMSC, PSALM entered into a six-month contract with SPC Power Corp. to ensure the continued operation of the Visayas-based complex after the Rehabilitate-Operate-Maintain-and-Manage Agreement between National Power Corp. and SPC expired last March 25, 2012. The OMSC with SPC will expire on September 25, 2012.

The Naga power plant complex consists of three thermal power plants that use a combination of diesel, bunker C oil and coal as fuel. These are the coal-fired 50-MW Cebu Thermal Power Plant 1 and 56.8-MW Cebu Thermal Power Plant 2; and the 39-MW Cebu Diesel Power Plant 1 which consists of six diesel-fed power units with a capacity of 6.5 MW each.   source