Four firms said interested in Naga power plant complex

Business World Online

Posted on February 21, 2014 09:02:06 PM

Four local firms have expressed interest in participating in the third auction for the privatization of the 153.1-megawatt (MW) Naga power plant complex next month, the Power Sector Assets and Liabilities Management Corp. (PSALM) said in a statement on Friday.

“The third round of bidding for the sale of the 153.1-megawatt (MW) Naga power plant has drawn the interest of four investor groups,” the statement quoted PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. as saying.

“The interested parties for this bid are all Filipino companies with various interests in the local energy industry, and all four groups have completed the initial requirements,” Mr. Ledesma added.

PSALM, however, refused to name the interested parties.

“I could only disclose the name of the bidders after the pre-bid conference on Monday,” Mr. Ledesma said in a text message.

“By this time, the seriousness of the bidders to participate in the bidding is ascertained,” he added.

PSALM’s initial requirements were the submission of a letter of interest and payment of a P120,000 non-refundable participation fee by Feb. 14; and execution of confidentiality agreement by Feb. 17.

The auction for the Naga complex, located in Barangay Colon, Naga City, Cebu, was scheduled for Mar. 31.

PSALM is the agency mandated by the Electric Power Industry Reform Act of 2001 (Republic Act No. 9136) to handle the sale of the remaining power assets and financial obligations of the National Power Corp.

The first two auctions for the privatization of the Naga complex -- held in July and September last year -- both failed after only one firm participated in both exercises.

The power facility is currently being handled by SPC Power Corp. under an operation and maintenance service contract that will lapse in this coming March.

The power plant complex consists of three power plants: the coal-fired Cebu thermal power plants 1 and 2, with installed capacities of 52.5 MW and 56.8 MW, respectively; and 43.8-MW Cebu diesel power plant, consisting of six 7.3-MW diesel-fed power units.

PSALM last month said it will also bid out the independent power producer administrator contracts for Mt. the Apo 1 and 2 geothermal power plants in third quarter.

Each of the power plants, located in Kidapawan City, North Cotabato, has an installed capacity of 54.24 MW. -- Claire-Ann Marie C. Feliciano   source