Friday, September 9, 2016

PSALM keen on selling off Sucat, other scrap assets



By Danessa Rivera (The Philippine Star) | Updated September 9, 2016 - 12:00am

MANILA, Philippines - State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is keen on bidding out the decommissioned 850-megawatt (MW) Sucat thermal power plant (STPP) as well as other remaining scrap assets before the year ends.
The bidding for the decommissioned Sucat plant and other scrap assets are slated later this year, PSALM officer-in-charge Lourdes Alzona said in a text message.
“The bidding of Sucat before the year ends is still in our schedule. Same with the sale of other disposable/excluded assets,” she said.
These assets encountered failed biddings when these were auctioned earlier this year.
The STPP was bid out last April, which was declared as a failed bidding after the three qualified bidders did not meet the reserve price set by the PSALM Board.
The April auction was the second round of bidding after the STPP sale in 2014 was terminated after PSALM discovered winner Genetron International Marketing submitted fake documents.
The STPP sale involved all structures, plant equipment, auxiliaries and accessories of the decommissioned thermal power plant with four units.
Meanwhile, PSALM bid out Visayas and Mindanao scrap assets last March, but was also declared a failure because no bidder met the reserve price.
The sale, which had a minimum price of P18 million, involved all materials, scrap and plant equipment of Cebu Diesel Power Plant II in Toledo City, Cebu, Palinpinon Geothermal Power Plant in Valencia, Negros Oriental, Bohol Diesel Power Plant in Tagbilaran City, Bohol and Aplaya Diesel Power Plant in Jasaan, Misamis Oriental.
These assets are targeted to be sold by 2017.
Meanwhile, PSALM is undertaking an evaluation on the privatization of the 650-MW Malaya Thermal Power Plant in Rizal, Alzona said.
“There is ongoing evaluation for the Malaya plant, and if the board’s clearance to privatize Malaya Plant is secured, PSALM could start working on the bidding documents this year. Target closing is 2018,” she said.
The Malaya power plant consists of a 300-MW unit with a once-through type boiler and a 350-MW unit fitted with a conventional boiler. It was designated as a must-run unit (MRU) by the Department of Energy (DOE) to address supply deficiency when operating power plants in the grid suddenly bog down or become unavailable.

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