Psalm lines up Naga power plant again on auction block

Business Mirror

06 Feb 2014 

 

Written by Lenie Lectura

The Power Sector Assets and Liabilities Management Corp. (Psalm) has lined for the third time in seven months the sale of the 153.1-megawatt (MW) Naga power plant this quarter.

“After obtaining the necessary approval from the board of directors, we have formalized the commencement of the Naga sale process through the ITB [Invitation to Bid] publication, which will run in local newspapers from February 6 to 8,” Psalm President and Chief Executive Officer Emmanuel R. Ledesma Jr. said.

Interested bidders have until February 14 to submit a letter of interest and to pay the nonrefundable participation fee of P120,000. As a prerequisite for the issuance of the bidding package, they must also submit a confidentiality agreement and undertaking with Psalm on or before February 17.

The state firm will hold a pre-bid Conference on February 24, while the deadline for the submission of bids is on March 31 at 12 noon, with the opening and evaluation of bids commencing thereafter.

Psalm held the bidding for the Cebu-based power facility twice last year.

In July 15, 2013, Psalm, through its Privatization Bids and Awards Committee (PBAC), declared a failure of the first round of bidding after only one bidder submitted documentary deliverables that were deemed compliant by the PBAC.

The second round of bidding, held on November 7, 2013, was, likewise, declared a failure after only one bidder submitted a bid.

Located in Colon, Naga City, Cebu, the Naga power plant consists of two thermal power plants and one diesel-fired power plant that use a combination of coal, bunker C oil and diesel as fuel.  These are the 52.5-MW Cebu 1 and 56.8-MW Cebu 2 coal-fired thermal power plants, and the 43.8-MW Cebu Diesel Power Plant 1 composed of six 7.3-MW bunker C-fed power units.   source