Published March 3, 2017, 10:00 PM By
Myrna M. Velasco
Asset-seller Power Sector Assets and
Liabilities Management Corporation (PSALM) is anticipating a “failed bid
outcome” on the scheduled privatization of the 650-megawatt Malaya thermal
power facility, but this is a fate already accepted by Energy Secretary Alfonso
G. Cusi and he is instead opting for a rebid process.
It was gathered that some of the
interested groups in the Malaya asset already have second thoughts advancing to
the final bid submission because the energy chief’s proposal to have the plant
converted into a liquefied natural gas (LNG) power facility may necessitate
material changes in the auction’s terms of reference.
No hints for now which parties would
be withdrawing on their intended participation in the asset’s bidding, which is
slated March 8 this year.
When the Malaya plant was first
planned for divestment, it was still to run as oil-fired generating asset,
without the condition on fuel use conversion.
Cusi told reporters that it would
even be better to rebid the asset with condition on the LNG conversion – that
is if the current batch of interested groups would not be keen on the fuel
shift arrangement for the facility.
“From diesel which is inefficient
and expensive power source, what we just want is to have a cleaner source of
power that could run baseload – still at 600MW, and equipped with a reliable
technology,” he said.
The plant’s technology shift is
already incorporated in the draft contract that PSALM will have with the
winning bidder.
Cusi emphasized that PSALM has to
present a study on the plant’s propounded conversion before the company could
move to any next round of bidding process – just in case the March 8 auction
would be a flop.
The energy chief added that the
delivery of LNG fuel to the plant – either via a pipeline or on the feasibility
of break-bulk gas handling facility, shall be part of the items that the
asset-seller firm must study and evaluate.
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