3 companies to bid for third party auctioneer services

09 Mar 2006

Three companies have offered their services to become the third party auctioneer (TPA) of the Power Sector Assets and Liabilities Management Corporation (PSALM) in its efforts to facilitate the sale of the decommissioned, or retired, plants of the National Power Corporation.

Froilan A. Tampinco, PSALM vice president for Asset Management and Electricity Trading, disclosed that the three firms have already submitted their respective proposals for the TPA services "even while the terms of reference" are still being finalized. He did not identify the three companies.

Tampinco said the engagement of a third party auctioneer would be done through public bidding.

Noting that it took so much time disposing of the retired plants of National Power, PSALM decided to hire the services of a third party auctioneer as an alternative strategy in the auction of these decommissioned facilities. Tampinco said the plan was approved by the PSALM board.

"Professional auctioneers who have a broad network of clients both here and abroad can tap more players for the bidding exercises for National Power's decommissioned plants," Tampinco pointed out.

Under the terms of reference being finalized, the main function of the third party auctioneer, who will provide a comprehensive asset disposal service to PSALM, involves formulating an appropriate sale strategy and methodology for the decommissioned power plants. This includes the administration of an inventory of the assets, the preparation of the assets, the strategic conduct of the auction, and the removal of the assets from their respective sites.

National Power currently has at least five retired plants in its portfolio: the 225- megawatt (MW) Bataan (bunker), the 54-MW Cebu II (diesel), the 200-MW Manila (bunker), the 22.3-MW General Santos (diesel), and the 108-MW Aplaya (diesel) power plants.

By engaging the services of a third party auctioneer, PSALM hopes to gain ground in selling these decommissioned power facilities, three of which underwent unsuccessful bidding exercises in 2005. The Bataan thermal plant, which is scheduled for a negotiated sale this year, underwent two rounds of failed biddings in April and September last year. Likewise, the first auction for both the Cebu II and Manila plants held in the first quarter of 2005 was declared a failure.

Strategic Communications and Partnership Division
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