Bidders' forum for sale of decommissioned plants set

20 Sep 2006

Moving forward with the privatization of the assets of the National Power Corp. following the successful auction of the Pantabangan-Masiway hydroelectric complex last 08 September, the Power Sector Assets and Liabilities Management Corporation (PSALM) will conduct a forum for bidders of the decommissioned or retired power plants on Friday, 29 September 2006.

To be held from 9 a.m. to 12 noon at the PSALM office at the sixth floor of the Bankmer Building on Ayala Avenue in Makati City, the forum seeks to obtain feedback and recommendations from bidders on the terms and conditions of the sale of these retired power facilities.

The decommissioned assets set to be privatized by PSALM are the 225-megawatt (MW) Bataan Thermal Power Plant in Limay, the 200-MW Manila Thermal Power Plant in Ermita, the 22.3-MW General Santos Diesel Power Plant in South Cotabato, the 54-MW Cebu II Diesel Power Plant in Toledo City, and the 108-MW Aplaya Diesel Power Plant in Misamis Oriental. Since these assets have been "retired" or are non-operational, they will be assessed based on their scrap value.

"Since PSALM is currently preparing for the privatization of its decommissioned assets, we deem that an avenue where interested parties can sit together and discuss their views with us will be very helpful in formulating the most effective disposal strategy for the assets," said Mr. Froilan A. Tampinco, vice president for Asset Management and Electricity Trading.

PSALM decided to hold a bidders' forum in response to the requests of a number of investors who had sent expressions of interest to bid for the decommissioned power plants, disclosed Mr. Tampinco.

"We are very pleased with the positive responses we've been receiving from prospective bidders," he said. "Based on the feedback, the market seems to be ready for the bidding of the decommissioned assets. We are taking advantage of this warm reception by knowing what our investors' concerns and preferences are to help us improve our sale process and ensure greater participation in the auction."

In preparing the disposal program and necessary bidding documents for the retired power plants, PSALM will consider the feedback it obtained from the forum discussion.

Expected participants in the forum are representatives from several construction and steel manufacturing companies that have expressed their interest in bidding for the retired power facilities. Other interested parties who wish to join the forum can send a formal letter of request to Mr. Tampinco before 27 September. Participants can contact Ms. Marites Camiring of the Asset Valuation and Disposal Department (telefax numbers (+632) 892-6123 and 848-0263) for more details.

Strategic Communications and Partnership Division
Tel. No. (632) 9029067