24 Jul 2008
The Power Sector Assets and Liabilities Management Corporation (PSALM) will rebid the 0.8-megawatt (MW) Amlan Hydroelectric Power Plant after the bidding it conducted for the Negros Oriental-based power facility last Wednesday (23 July 2008) was declared a failure.
Only one bidder - Sta. Clara International Corp., which bought the 1.2-MW Loboc Hydroelectric Power Plant in Bohol for USD1.42 million in a bidding conducted by PSALM in November 2004 - was prepared to submit a bid for the Amlan power plant.
The two other bidders that expressed interest in acquiring Amlan decided at the last moment not to pursue their respective bids even after their request for more time to conduct their due diligence was accommodated by PSALM.
Adhering to the bidding rules it has set, PSALM declared the Amlan sale a failure after it was left with only one bidder as it belied a newspaper report that it was "avoiding declaring a failure of bidding." The rules explicitly state that a bidding for a power plant is considered failed if there is only one participant in the process.
The PSALM Board decided in its meeting on 23 July 2008 to immediately rebid the asset, the first power plant to be constructed in the province of Negros Oriental.
Strategic Communications and Partnership Division |