Tuesday, January 7, 2014

Idle power plant attracts prospective investors


Business World Online
Posted on January 07, 2014 10:21:02 PM

ALL NINE FIRMS that initially expressed interest in the sale of the disposable assets of the 850-megawatt (MW) Sucat thermal power plant were represented in the pre-bid conference held yesterday, an official said yesterday.

  “All nine interested parties (six Filipino and three foreign firms) attended the pre-bidding activity, wherein the bidding procedures and other concerns regarding the sale of the non-generating power asset were discussed,” Power Sector Assets and Liabilities Management Corp. (PSALM) President and Chief Executive Officer Emmanuel R. Ledesma, Jr. said in a text message when asked for updates.

Mr. Ledesma identified the six local companies as: Aluminum Recycling Specialist, Inc.; Bonapor Metal Contractor Services & General Merchandise; Genetron International Marketing; MZQ Trading; Sta. Clara International Corp.; and VPD Trading.

The foreign companies were: DDM Demontage BV from the Netherlands; Gagasan Steel, Inc. from Malaysia; and Sinolink International Enterprise Holdings Ltd. from China.

“While PSALM is selling the Sucat plant as a decommissioned power facility, we give equal importance to this bidding exercise, as PSALM judiciously strives to improve the government’s financial position through its privatization,” Mr. Ledesma noted.

The official did not respond when asked on concerns raised by the prospective bidders.

Last week, PSALM announced that the nine firms complied with initial bidding requirements, involving submission of letters of interest before Dec. 19, as well as payment of P100,000 participation fee and execution of confidentiality agreement before Dec. 20.

The auction for the decommissioned plant is scheduled on March 12, 12 p.m. at the firm’s office in Makati City.

PSALM is selling all equipment, structures, auxiliaries and accessories of the Sucat plant in Muntinlupa City.

The oil-fired plant was acquired by National Power Corp. (Napocor) in November 1978. It consists of one 150-MW unit, two 200-MW units, and a 300-MW unit.

The Sucat plant started commercial operations on Aug. 1, 1968 after completion of its first unit. Units 2 to 4 followed after their construction was completed in 1970, 1971, and 1972, respectively.

However, these facilities were decommissioned in January 2000 (units 1 and 4) and January 2002 (units 2 and 3) due to inefficiency and high operating costs.

PSALM, in August last year, formed a technical working group to plan the disposal of the equipment and accessories of the power plant.

The state-run firm was formed under Republic Act 9136, or the Electric Power Industry Reform Act of 2001, to assume ownership of and manage all Napocor’s assets, liabilities, contracts with independent power producers and other disposable assets. --Claire-Ann Marie C. Feliciano   source

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