Sunday, February 23, 2014

Agus VI rehab starts in October

Business World Online 
Posted on February 23, 2014 09:56:23 PM

REHABILITATION WORKS on the two units of the Agus VI hydroelectric power plant in Lanao del Norte are expected to proceed in October, an official from the Power Sector Assets and Liabilities Management Corp. (PSALM) said last week.

Emmanuel R. Ledesma, Jr., PSALM president and chief executive officer, said in a text message that preliminary activities for the rehabilitation project had begun.

"The contracts for the design and supply of major equipment for the Agus rehabilitation project was completed last month," Mr. Ledesma said.

"Actual rehabilitation works on the ground will take place in Oct. 2014," he added, noting that the rehabilitation is expected to be completed in the second quarter of 2016.

In January, PSALM announced that it had awarded the project on Dec. 12 to the consortium of China-based Guangxi Hydroelectric Construction Bureau and ITP Construction Corp.

The consortium had been declared the lowest bidder for the upgrade of the two units of the power plant after the firm tendered a P1.59-billion offer in an Oct. 25 auction.

Two more groups participated in the bidding for the project, but one of them failed the technical evaluation, a prerequisite to the financial evaluation.

The other group that was qualified to proceed with the bidding -- the joint venture of HydroChina ZhongNan Engineering Corp., Harbin Electric Machinery Co. Ltd. and BSP & Company, Inc, -- submitted a larger bid of P1.68 billion.

Eight groups had earlier expressed interest in and bought bid documents for the project.

Besides the firms already mentioned, the other parties were Alstom Philippines, Inc.; China International Water and Electric Corp.; Kaltimex Energy Philippines, Inc.; PHP Philippine Hydro Project, Inc.; Vicente T. Lao Construction; and Zhejiang Fuchunjiang Hydropower Equipment Co. Ltd.

The rehabilitation project intends to increase the power output of the first and second units of the Agus VI power plant from 25 megawatts to 34.5 MW each.

"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," PSALM had said.

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 a 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 needs.

Under the Electric Power Industry Reform Act of 2001 (Republic Act No. 9136), 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

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