PSALM readies overhaul of Malaya plant

By Iris C. Gonzales (The Philippine Star) | Updated October 11, 2014 - 12:00am

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM), the agency overseeing the privatization of state-owned power assets, has laid the groundwork for the overhaul of the aging Malaya Thermal Power Plant in Rizal, in line with efforts to address a looming power shortage next year.

PSALM president Emmanuel Ledesma Jr. said three companies submitted proposals for the overhaul contract but only one proponent passed the stringent requirements.

“Malaya overhaul procurement was conducted last Sept. 18. Guangxi, STX Marine and Weir Engineering were able to submit proposals. Only STX passed the evaluation of the eligibility requirements. STX bid is now under evaluation by the Bids and Awards Committee,” Ledesma said.

Under the terms of reference, the project is to be completed within 90 days from issuance of the notice to proceed, Ledesma said.

The overhaul will be implemented on Malaya’s Unit 1.

Prior to this, PSALM awarded to STX Marine the contract to operate and maintain the Malaya plant.

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The Department of Energy and PSALM are studying the different options for the rehabilitation of the Malaya plant to have it available in time for the summer season.

Energy Secretary Carlos Jericho Petilla has proposed the declaration of the state of emergency in the power sector to avert a looming crisis next year.

The Electric Power Industry Reform Act of 2001 (EPIRA) prohibits the government from constructing power plants.

However, Sect. 71 of the law states that the President, upon determination of an imminent shortage of supply of electricity, may ask Congress for authority, through a joint resolution, to establish additional generating capacity under such terms and conditions it may approve.

If and when the President invokes this EPIRA provision, the government will contract additional capacity by renting diesel fuel facilities similar to what Japan used during the aftermath of the nuclear disaster that hit Fukushima Japan in 2011. source