PSALM defers bidding for Malaya power plant

Danessa Rivera (The Philippine Star) - March 22, 2020 - 12:00am
https://www.philstar.com/business/2020/03/22/2002568/psalm-defers-bidding-malaya-power-plant

MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has pushed back the bid date for the 650-megawatt Malaya Thermal Power Plant (TPP) in Rizal to May 19.

The original deadline for the submission of bids for the third round of public bidding for the Malaya TPP is April 30.

The adjustment in the bid schedule was made in view of the enhanced community quarantine throughout Luzon to avert the spread of the coronavirus 2019 disease (COVID-19).

“In view of the enhanced quarantine in Luzon, PSALM adjusted the Malaya TPP bidding schedule and notified the interested bidders of the same,” PSALM president and chief executive officer Irene Besido-Garcia said in a text message.

Apart from the bid deadline, PSALM has also set the last day for the submission of letters of intent (LOI), executed confidential agreement, undertaking forms and payment of a non-refundable P150,000 participation fee on April 16.

“LOI is a requirement to acquire the bidding package for MTPP,” Besido-Garcia said.

Meanwhile, the state-run firm has given interested parties until April 17 to submit all documentary deliverables.

PSALM will disclose the minimum bid price to qualified bidders immediately after obtaining the approval of its board.

The MTPP is currently operating and is being dispatched as a must run unit (MRU) by the National Grid Corp. of the Philippines (NGCP).

Once privatized, MTPP is no longer required to run as an MRU.

In 2019, there were two rounds of public bidding and both were unsuccessful.

PSALM is bent on privatizing the asset, which is sold on an “as-is-where-is” basis, by taking the necessary steps to adjust the minimum bid price.

It has also conducted valuation studies on MTPP and its underlying land in determining the reserve bid price.

PSALM had asked the Commission on Audit (COA) to allow it to lower the price of MTPP after two rounds of failed bidding.