PSALM opens bidding for decommissioned plant

30 Nov 2006

Encouraged by strong investor confidence in and support for the government's privatization program, the Power Sector Assets and Liabilities Management Corporation (PSALM) recently commenced the sale process for one of its decommissioned assets, the Manila Thermal Power Plant (MTPP).

In an Invitation to Bid (ITB) published recently in major newspapers, PSALM invited all interested parties to participate in the second round of bidding for the sale of the MTPP.

The MTPP was first bid out in the first quarter of 2005, but the auction failed due to lack of investor interest. But PSALM's hopes are high for the second round of bidding primarily because of "the positive feedback that PSALM has been getting from investors and stakeholders," said Mr. Froilan A. Tampinco, PSALM vice president for Asset Management and Electricity Trading.

"With the heightened interest and positive responses we have received from investors during the bidders' forum held last month, we believe that the market is prepared for another auction of one of our decommissioned plants," he added.

Located in Ermita along the Pasig River, the MTPP has two identical generating units, each with a capacity of 100 megawatts. Unit One was commissioned on 1 September 1965, while Unit Two was commissioned on 15 October 1966. Both units substantially contributed power to the Luzon Grid until they were retired in January 2000.

Since the plant is already non-operational or retired, PSALM expects bidders who are in the construction or steel manufacturing business, or those who are eyeing the scrap value of the MTPP's equipment, component auxiliaries and accessories, to participate in the bidding for the decommissioned facility.

Investors interested in bidding for the MTPP have until 5 p.m. of 6 December 2006 to submit their Letters of Interest (LOI) to the PSALM Office at the 2nd floor, SGV II building, Ayala Avenue in Makati. Those who meet the deadline for the submission of LOIs will be asked to execute a Confidentiality Agreement and an Undertaking, which must also be submitted to PSALM no later than 5 p.m. of the following day, 7 December 2006.

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