Monday, January 7, 2019

PSALM resets consultancy bidding for valuation of Malaya power plant



Published By Myrna M. Velasco

State-run Power Sector Assets and Liabilities Management Corporation (PSALM) has re-scheduled to January 7, 2019 (Monday) the bidding for consultancy services on drawing up the valuation for the soon-to-be-privatized 650-megawatt Malaya thermal power plant.
PSALM is targeting to privatize the Malaya plant first half of 2019 – and the mode of divestment entails straight sale of the power plant asset and the property where it is sited.
The valuation to be drawn by the consultant will be highly significant because this will be prescribed as the “reserve price” in the Malaya asset’s bidding.
In its tender notice, PSALM stipulated that “sealed proposals must be addressed and delivered to the chairperson” of the company’s bids and awards committee.
“The minimum required technical score is 75 percent. The consultant with the highest rated and responsive proposal shall be awarded with the contract,” the company said.
PSALM primarily required that the targeted consultant shall have “experience in a financial valuation of a government or private-owned generating power plant, plant machineries or IPP (independent power producer) contracts in the Philippines or other foreign jurisdictions.”
The consultant must have also gained experience in a feasibility study of power plant assets; possesses expertise in tariff assessments and projections; has technical and financial prowess on appraisal of real estate assets, structures and machineries; as well as competency in electricity market pricing dispatch.
On valuation of the Malaya plant’s site, PSALM chiefly requires that the consultant is a licensed real estate appraiser in the Philippines – “or has the appropriate permits or license to practice their appraisal profession in the Philippines.”
As PSALM expects the consultancy services to be rendered may be carried out by parties within joint venture (JV) tenet, the company indicated that it wants such JV arrangements to be in place already prior to the bidding parties’ submission of proposals.
For foreign bidders, the state-run firm emphasized that the documents “may be substituted by the appropriate equivalent documents in English – if any, and issued by the country of the bidder concerned.”
In lieu of that, PSALM noted that the documents “must be accompanied by a translation of the documents in English issued by the relevant foreign government agency or a registered translator in a foreign bidder’s country; and shall be authenticated by Philippine foreign service establishment/post or the equivalent office having jurisdiction over the foreign bidder’s affairs in the Philippines.”

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