09 May 2007
Twenty of the 22 investor groups that have expressed interest in the bidding for the 600-megawatt (MW) Masinloc coal-fired power plant attended the prebid conference held by the Power Sector Assets and Liabilities Management Corp. (PSALM) in its Makati City office Tuesday, 08 May.
PSALM informed the investors that it would issue a Supplemental Bid Bulletin within the week to announce the release of the transaction documents for the Masinloc sale. The transaction documents will contain the Asset Purchase Agreement and the Land Lease Agreement for the Zambales-based power facility.
PSALM is also set to announce to bidders the exact amount of power supply allocation for the Masinloc sale. The government's power privatization arm together with the National Power Corp. is finalizing the power supply allocation which will be part of the sale as contained in the Invitation to Bid that PSALM published last March.
The allotment of the transition supply contract (TSC) is crucial to the auction of the Masinloc power facility, which PSALM targets to conduct in July. A TSC assures the winning bidder a ready market for the plant's output.
President and Chief Executive Officer Jose C. Ibazeta said PSALM is "running in little bit of a tight schedule" on the sale of the Masinloc, as it targets the privatization of 50% of all National Power generating plants by end-2007, which will include the 600-MW Calaca coal-fired plant, and the 75-MW Ambuklao and 100-MW Binga hydroelectric plants. He added that PSALM also hopes to re-auction the National Transmission Corp. this year.
As part of its efforts to fast-track the government's power privatization program, PSALM conducted the prebid conference to ensure that all interested parties are aware of the bidding procedures and acquainted with all the documentary requirements necessary for the exercise.
The prebid conference also provides a venue for the prospective bidders to voice their comments on the bidding procedures and documentary deliverables that PSALM will require from the interested parties.
"We want to make sure that everything will be transparent and the rules will be fair," President Ibazeta said in his welcome remarks.
The 22 investor groups that have expressed interest in the bidding for the Masinloc plant include 15 foreign companies and seven local firms. Of the 15 foreign companies, seven come from the Asia-Pacific region, four from North America, and four from the United Kingdom and Europe.
PSALM anticipates a more expeditious sale process for the Masinloc plant after it obtained the specific consents of National Power's major creditors - the Asian Development Bank, the Japan Bank for International Cooperation and the World Bank.
Strategic Communications and Partnership Division |