02 Mar 2005
The Power Sector Assets and Liabilities Management Corporation (PSALM) today formally invited potential bidders and other investors to participate in an Investor Preliminary Asset Review Process (IPARP). The IPARP is expected to accelerate government efforts to privatize the generation assets of the National Power Corporation (NPC).
PSALM Vice President for Asset Valuation & Disposal Froilan A. Tampinco explained that the IPARP “is a prior-to-bidding process for parties who want to participate in the bidding exercises of PSALM. Although it is not part of the bidding process, it will allow potential bidders to have a better assessment of their target power plants through site visits and access to the plant data.”
Mr. Tampinco said that “based on the previous public biddings for NPC generation assets, the due diligence period consumes the greatest amount of time in the bidding schedule. With the IPARP, it is expected that bidders will take up less time for their due diligence activities during the formal bid process, thus accelerating the entire bidding process.”
The fee for accessing power plant data is pegged at a non-refundable amount of US$500 for information on one or two power plants, and US$1,000 for three or more power plants. Site visits require a separate fee of US$1,000 per power plant per visit. The fees may be paid in cash, manager’s check or cashier’s check.
In addition to the said fees, interested parties are also required to submit a written Expression of Interest (EOI) and execute a Confidentiality Agreement and Undertaking which are documents similar to those required for a formal due diligence.
The IPARP for a particular power plant will end upon the commencement of the formal due diligence on that plant, which will coincide with the start of the formal bidding process for that plant as announced through the publication of an Invitation to Bid.
Strategic Communications and Partnership Division |