12 Dec 2006
The Power Sector Assets and Liabilities Management Corporation (PSALM) and the National Irrigation Administration (NIA) have signed the commercial terms and conditions for the lease contract for the NIA lands underlying a portion of the 360-megawatt Magat Hydroelectric Power Plant (HEPP) that will be auctioned off on 14 December.
"We have threshed out and finalized the service fee for the Operations and Maintenance (O&M) Agreement and the rentals for the lease contract of the NIA lands. The O&M Agreement will be binding between PSALM and NIA," said PSALM Vice President Froilan A. Tampinco, who disclosed that a supply contract of around 95MW has been attached to the power plant.
The O&M Agreement details the terms and conditions set by PSALM and the NIA for the operation and maintenance of the dams and the other non-power components needed for the operation of the Magat power complex. The Magat plant has the largest generating capacity among the hydroelectric power facilities currently operating.
"PSALM has already released to bidders a supplemental bid bulletin which contains the final execution copies of the O&M Agreement and the lease contract. These documents will have to be signed by the bidders and submitted to PSALM on the bidding date," said Mr. Tampinco.
Five prospective bidders for the Magat HEPP submitted their documentary deliverables on the 14 November deadline. Four of these investors have complied with all the documentary deliverables for the Magat facility.
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.
Strategic Communications and Partnership Division |