28 Jun 2005
The Power Sector Assets and Liabilities Management Corporation (PSALM) yesterday cancelled the bidding for the 600 MW coal-fired Calaca power plant after two of the three qualified bidders backed out shortly before the deadline for submission of main offers.
“We understand if most of the prospective investors are hesitant to push through with their bids, considering that we have yet to close the transition supply contracts (TSC) with the distribution utilities and large power users,” said Mr. Froilan A. Tampinco, PSALM Vice President for Asset Management and Electricity Market.
In persistent efforts to finalize supply contracts, PSALM, in joint endeavour with the National Power Corporation (NPC), is currently engaged in negotiations with various private distribution utilities, electric cooperatives and different industrial corporations all over the country.
PSALM has already conferred with distribution utilities in North and South Luzon, while discussions with those in the Visayas and Mindanao regions have been scheduled next month. NPC and PSALM had concluded supply contracts with major utilities in Visayas and Mindanao, such as Visayas Electric Co., Davao Light & Power Co., and Cagayan de Oro Electric Power and Light Co.
With the withdrawal of the two groups, PSALM no longer accepted the bid documents presented by First Gen Luzon Power Corporation.
Despite the cancelled bidding however, Mr. Tampinco remains optimistic that the privatization of the generation plants will be successfully carried out.
Mr. Tampinco also said that PSALM will soon announce the revised schedule for the Calaca bidding.
Strategic Communications and Partnership Division |