Magat power complex to be bid out in December as seven bidders attend pre-bid conference

14 Nov 2006

The 360-megawatt Magat hydroelectric power plant complex is slated to be bid out in December as seven investor groups attended the recent pre-bid conference conducted by the Power Sector Assets and Liabilities Management Corp. (PSALM) for the country's largest hydroelectric power facility.

"The pre-bid conference serves as an appropriate venue for us and for the bidders to thresh out issues regarding the sale structure of the plant," said Mr. Froilan A. Tampinco, PSALM vice president for Asset Management and Electricity Trading.

Raising issues on watershed management and oversight committee functions, among other items, the seven bidders and their representatives aired their concerns and offered suggestions on a number of provisions stipulated in the plant's Operation and Maintenance (O & M) Agreement. The O & M Agreement details the terms and conditions set by PSALM and the National Irrigation Administration (NIA) regarding the technical and commercial operation of the Magat power complex, which has the largest generating capacity among the hydroelectric power facilities currently operating.

Led by Mr. Tampinco, PSALM and representatives from NIA and the National Power Corporation answered the questions and clarified the concerns raised by the bidders.

"I thank our bidders for discussing their concerns and offering their suggestions, all of which have been duly noted," said Mr. Tampinco. "The points they have raised will be important and helpful in ensuring that all issues are adequately addressed before the bidding in December."

Mr. Tampinco also thanked the bidders for their "continued interest in and show of support for the bidding of Magat."

The Isabela-based power plant is the second hydroelectric power facility to be bid out by PSALM this year, following the successful sale last September of the 112-MW Pantabangan-Masiway hydroelectric power complex in Nueva Ecija.

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