Overhaul work at Malaya thermal plant begins

Business World Online
Posted on December 08, 2014 10:35:00 PM

SOUTH Korean firm STX Marine Service Co. Ltd. has started overhaul work at the 300-megawatt (MW) unit of Malaya thermal power plant in Rizal.

The Power Sector Assets and Liabilities Management Corp. (PSALM) said it already issued the notice to proceed (NTP) to STX Marine last week.

“The NTP was already issued by PSALM on Dec. 1. The contractor has already mobilized (sic) at the site,” PSALM Vice-President Elmer A. Cadano said in a mobile phone message reply yesterday.

“Under the contract, they (STX Marine) should be able to complete the overhaul within 90 days barring any extraordinary works that may be required by the circumstances and condition of the equipment,” Mr. Cadano added.

PSALM last month awarded the contract to STX Marine after the Korean company hurdled a post-qualification evaluation.

PSALM’s board last August approved the rehabilitation of the power facility to help it run at full capacity. The overhaul, if completed on time, could help mitigate the supply problem expected in the summer months of next year.

PSALM conducted negotiated procurement for the project and requested proposals from nine contractors.

However, only three service providers -- including STX Marine -- tendered their proposals prior to submission deadline. The two others were Guangxi Hydroelectric Construction Bureau and Weir Engineering Services, Ltd.

Only STX Marine was found compliant with the eligibility and technical requirements.

The Malaya thermal plant has a 300-MW unit and a 350-MW unit. It was first rehabilitated by Korea Electric Power Corp. under a 15-year rehabilitate-operate-maintain management agreement with the government.

STX Marine is the same company that also won a one-year contract to operate and maintain (O&M) the entire 650-MW power asset located in Pililia, Rizal.

It was the lowest bidder for the contract with its P302.15-million offer, outbidding its rival SPC Power Corp.’s bid of P428.78 million.

PSALM described STX Marine as a firm that engages in the design, construction, supervision and repair of system or equipment related to energy.

The Korean firm also offers ship management, marine transportation and brokerage services, as well as ship design, construction, leasing and repair. -- Claire-Ann Marie C. Feliciano source