27 Feb 2008
With investor interest remaining high in the government's power privatization program, the Power Sector Assets and Liabilities Management Corporation (PSALM) today opened this year's sale schedule for the generating assets of the National Power Corporation with the auction of the 289-megawatt (MW) Tiwi and 458.53-MW Makban geothermal power plant complex.
In the Invitation to Bid it published in local newspapers starting today, PSALM stated that it is now accepting Letters of Interest from prospective investors for the two geothermal plants until 12 March 2008. The bid covers the generating assets, which are being offered on an "as is, where is" basis, structures and improvements, spare parts, and general plant equipment of the Tiwi and Makban power plants. It also covers the steam field facilities and the Geothermal Resources Sales Contract between PSALM and the Philippine Geothermal, Inc. (now Chevron Geothermal Philippines Holdings, Inc.), the steam supplier for the two facilities.
PSALM also noted that a power supply allocation will be affixed to the Tiwi-Makban plant package.
As a prerequisite to the issuance of the bidding package, interested parties are required to execute a Confidentiality Agreement and Undertaking with PSALM and pay a non-refundable participation fee of USD2,000 not later than 14 March.
PSALM will hold a Pre-bid Conference for interested bidders on 02 April 2008 at its Makati City office. The bidding will be held on 04 June 2008.
Located in Tiwi, Albay province, the Tiwi geothermal power plant complex consists of three plants, namely, Plant A with two 60-MW units, Plant B with two 55-MW units, and Plant C with two 57-MW units. Plant B's Unit 4 was retired or decommissioned in 2003.
The Makban plant complex in Southern Luzon, Bay & Calauan, Laguna and Sto. Tomas, Batangas is situated 70 kilometers east of Metro Manila. It consists of Plants A and B with two 63-MW units each, Plant C with two 55-MW units, Plants D and E with two 20-MW units each, and a binary plant with five 3-MW and one 0.73-MW units.
The Tiwi and Makban geothermal power plants were first commissioned in 1979.
PSALM initially offered the Tiwi and Makban plants as a package in September 2005. The bidding, however, was withdrawn by PSALM to consider changes in the Bidding Procedures and Transaction Documents that the government power privatization firm has been adopting in its recently sold assets.
PSALM noted that its sale of the generating assets has been very successful during the last two years. It sold the 112-MW Pantabangan-Masiway plant package and the 360-MW Magat hydro power plants in 2006. Last year, the government's ongoing privatization program was further strengthened with the sale of the 600-MW Masinloc and 600-MW Batangas (Calaca) coal-fired power plants, and the 175-MW Ambuklao-Binga hydroelectric power plant package.
Strategic Communications and Partnership Division