Agus facility upgrade deal draws more interest

Business World Online

Posted on August 29, 2013 10:14:18 PM

ANOTHER COMPANY has expressed interest in the auction of the contract to upgrade two units of the Agus VI hydroelectric power plant in Mindanao, bringing the total number of potential bidders to eight, the Power Sector Assets and Liabilities Management Corp. (PSALM) said in a statement yesterday.

“As of today, the number of prospective bidders is eight with the addition of Guangxi Hydroelectric Construction Bureau,” PSALM said, adding that the company is a construction firm headquartered in China.

Last Tuesday, PSALM said seven companies were keen on the uprating of the first two units of the Agus VI hydroelectric power plant.

These firms were identified as: Alstom Philippines, Inc.; China International Water and Electric Corp.; HydroChina ZhongNan Engineering Corp.; Kaltimex Energy Philippines, Inc.; PHP Philippine Hydro Project, Inc.; Vicente T. Lao Construction; and Zhejiang Fuchunjiang Hydropower Equipment Co. Ltd.

“We are happy with the turnout and we hope everyone submits a bid.

Other interested parties may still join this procurement project even until bidding day, as long as they purchase the bidding documents and submit documentary requirements,” PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. had said.

PSALM, in its invitation to bid published last month, required interested parties to pay a non- refundable fee of P100,000 for the bidding documents.

The company has approved a P2.598-billion budget for the contract.

In a pre-bid conference last July 30, interested firms were briefed on bidding procedures, as well as technical specification and requirements of the project.

The auction -- which will take place at PSALM’s office in Makati City -- has been scheduled on Sept. 30.

The uprating project intends to increase the power output of the first and second units of the Agus VI power plant from 25 megawatts (MW) to 34.5 MW each, PSALM said.

“The project will include the investigation, design, engineering, manufacturing, installation, testing and commissioning of the new hydro power turbines and blades of the two Agus VI power units, as well as replacement of electrical equipment, materials and devices necessary for the safe and reliable operation of the power facilities,” it added.

The state-run firm said the project is expected to be completed within 900 calendar days upon awarding of the contract.

The 200-MW Agus VI run- of-river hydro plant is located in Iligan City, Lanao del Norte. The plant consists of two units with combined capacity of 50 MW; and three units with total capacity of 150 MW.

The power plant is part of the Agus-Pulangui hydro power facility, which provides more than half of Mindanao’s electricity supply.

Under the Republic Act 9136 or the Electric Power Industry Reform Act of 2001, PSALM is mandated to manage the privatization and maintenance of National Power Corp.’s power generation assets, liabilities and contracted capacities. -- Claire-Ann Marie C. Feliciano   source