07 Nov 2007
The Power Sector Assets and Liabilities Management Corporation (PSALM) said there is as yet no final list of prequalified bidders for the bidding for the 25-year concession of the National Transmission Corporation (TransCo) to be held in December.
In a statement, PSALM said the prequalification results cannot be considered final because bidders are entitled under the Bidding Procedures to a reconsideration period of seven days from receipt of notice of the evaluation results.
PSALM assesses the financial and technical capabilities of the investor groups interested in bidding for the TransCo concession against the requirements stipulated by the power reform law (RA 9136) and the Bidding Procedures. The prequalification process ensures that only bidders with proven domestic or international experience as a leading transmission system operator will be qualified to participate in the formal bidding slated on 12 December 2007.
On 31 October, PSALM completed the evaluation of the prequalification proposals submitted by five prospective bidders. However, under the Bidding Procedures, the prospective bidders are given time to submit supplemental information to clarify their submissions. This reconsideration period is a standard procedure for bidding transactions and is also provided under the government procurement reform act. The final evaluation results are subject to the review and approval of the PSALM Board.
PSALM also announced that the schedule of activities prior to bidding was adjusted but the bid date of 12 December was maintained. It issued a supplemental bid bulletin to formally notify the interested bidders of modifications in the bidding timetable. Final pre-qualification results are due on 14 November, a week after the deadline of submission of supplementary documents. PSALM will conduct a pre-bid conference on 15 November to discuss the bidding transaction documents with the final set of prequalified bidders.
Bidders for the TransCo concession must have a member or affiliate with experience in operating and maintaining electricity transmission systems comparable to that of the Philippines, consisting of not less than 6,000 circuit kilometers of transmission lines operating at 115 kilovolts (kV) or higher and including within it a system operating at not less than 230 kV and having a peak demand of at least 6,000 megawatts. The member of the prospective bidder who meets the technical prequalification criteria must have a net asset value or market capitalization of USD500 million.
Bidders should also have the capability to form a concession that will meet the 60% Filipino ownership restrictions for grantees of a public utility franchise as stipulated in the Philippine Constitution.
The largest foreign and Filipino members of the prospective bidder will need to pass net asset value or market capitalization criteria.
Strategic Communications and Partnership Division |