03 Apr 2008
The Power Sector Assets and Liabilities Management Corporation (PSALM) will conduct a second pre-bid conference for the 747-megawatt (MW) Tiwi-MakBan geothermal power complex to address issues and concerns raised by the prospective bidders in the first pre-bid consultation held last Wednesday (02 April) at the PSALM office in Makati. PSALM posted a perfect play Wednesday as all nine of the investor groups interested in bidding for the two geothermal plants attended the pre-bid conference to clarify issues on the transaction documents that were provided to them as part of the bidding package.
To be held on Wednesday (16 April), the second pre-bid conference will specifically discuss the bidders' questions on the geothermal resource sales contract and the power supply allocation for the Tiwi-Makban plant package that is scheduled to be bid out on 04 June 2008. In the Invitation to Bid it published in local newspapers last 27-29 February 2008, PSALM announced that the sale of the Tiwi-MakBan power complex "will include a power supply allocation."
PSALM Vice President for Asset Management and Electricity Trading Froilan A. Tampinco, who presided over last Wednesday's consultation, said the transition supply contract (TSC) for the geothermal plants is still being finalized with the National Power Corporation. But he assured the bidders that the TSC would be known by 16 April.
PSALM President and Chief Executive Officer Jose C. Ibazeta welcomed the investor groups, saying that the bidding for Tiwi-MakBan would be "interesting" as it would be the first geothermal generation plants that the government is selling. Also the bidding will help boost the government's ongoing campaign to promote renewable energy sources such as geothermal.
This year, PSALM expects to reach the 70% privatization target for the generating assets of National Power in Luzon and the Visayas - one of the preconditions for starting open access and retail competition in the Philippine electricity industry.
Strategic Communications and Partnership Division