7 investor groups attend Limay pre-bid conference

05 Jun 2008

The seven interested parties in the sale of the 620-megawatt (MW) Limay Combined Cycle Power Plant attended the pre-bid conference conducted yesterday (04 June 2008) by the Power Sector Assets and Liabilities Management Corporation (PSALM) at its Makati office.

The seven investor groups, who beat last Friday's (30 May 2008) deadline for the submission of the initial requirements, met with PSALM officials - led by President Jose C. Ibazeta together with vice president for Asset Management and Electricity Trading Froilan A. Tampinco - to discuss the Bidding Procedures for the Limay plant sale.

PSALM noted that since Limay operates as a peaking plant, no power supply allocation will be attached to the sale. This means that the prospective owner will trade the plant's power output through the Wholesale Electricity Spot Market.

PSALM is selling the Limay plant on an as is, where is basis, but the new owner has the option to convert the facility into a base-load plant by turning it into a natural gas-fired power plant.

PSALM said the seven participants, which consist of two local and five foreign companies, have fully complied with the requirements and have been issued the Bidding Package.

The initial requirements included the submission of a Letter of Interest, execution of a Confidentiality Agreement and Undertaking, and the payment of PSALM's participation fee amounting to USD2,000.

The participants are currently conducting their Due Diligence, which started last 21 May and will end on 28 July 2008.

The bid date for the Bataan-based power asset is scheduled on 30 July 2008.

Commissioned in 1993, the Limay plant is composed of two 310-MW modules, Blocks A and B, having three 70-MW gas turbines and a 100-MW steam turbine each.

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