Published February 20, 2020, 10:00
PM By MYRNA
M. VELASCO
Energy Secretary Alfonso G. Cusi has
finally given his go-signal to the second revised terms of reference (TOR) for
the competitive selection process (CSP) being scheduled by Manila Electric
Company (Meralco) on procurement of new 1,200 megawatts for its supply
portfolio.
“Finally, there was a meeting of the
mind,” the energy chief said, noting that Meralco already concurred to his
recommendations on the revised CSP terms.
The new 1,200MW capacity will be for
a power supply agreement (PSA) that the utility firm will be needing starting
year 2024.
Cusi indicated the energy department
has also granted Meralco’s plea for an “authority to publish” its CSP tendering
process.
“They asked for authority to
publish. When they publish, they can already solicit tenders – so that’s a go,”
Cusi said.
Primarily, he emphasized that one
key concept in the CSP-TOR that had been sorted out is the participation of
merchant brownfield generating facilities in Meralco’s supply procurement.
He explained plants that have their
capacity on merchant basis and still considerably newly built or still within
their technological life cycles shall be allowed to join Meralco’s auction.
For example, he cited that if a
power plant has a life cycle of 25 years and it was just operating for the last
15 years, then it can still bid its capacity for the remaining duration of its
10-year life.
“We exchanged views and we suggested
and we articulated this and that, so that’s already okay,” Cusi stressed.
He said “the stacking option” had
also been acceded to by Meralco – and it entails that the capacity off-take
will not be for a bulk single contract of 1,200MW.
The energy chief further noted that
merchant plants shall be allowed to join because that is one of Department of
Energy’s (DOE) strategies to stimulate investments for power generating
facilities.
“Remember that we are encouraging
merchant power plants, so that infrastructure is ahead even without PSA,” the
energy secretary pointed out.
Meralco Vice President Lawrence S.
Fernandez confirmed that the utility firm “received DOE’s letter on the terms
of reference,” relating to the targeted CSP for 1,200MW capacity.
He said the TOR is already for
publication, but there is still a need to convene the third party bids and
awards committee (TPBAC) “to formally obtain their approval to publish.”
He said “we also need to confirm
their availability to set the schedules for the pre-bid conference and the
opening of bids,” adding that “these dates will be part of the invitation to
bid to be published.”
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