Government firms up 2008 power assets sale program

03 Sep 2008

Determined to hit its power privatization targets this year, the Power Sector Assets and Liabilities Management Corporation (PSALM) today (03 September 2008) firmed up the sale of more generating assets, including decommissioned or retired power plants, of the National Power Corporation through the issuance of three Invitations to Bid (ITBs).

The publication of the ITBs, which will end on Friday (05 September 2008), formally opens the maiden sale of the decommissioned 108-megawatt (MW) Aplaya and 22.3-MW General Santos diesel power plant package, and the second round of bidding for the generating 146.5-MW Panay and 22-MW Bohol diesel power complex, and the 0.8-MW Amlan Hydroelectric Power Plant.

The first round of bidding for the Panay-Bohol power plant package was launched last 16 July 2008. But it was eventually declared a failure after only one investor group submitted the preparatory sale requirements.

Set on 25 June 2008, the bidding for the Amlan hydro plant was also declared a failure after two of the three prospective bidders decided at the last moment not to pursue their respective bids.

Aplaya-GenSan decommissioned diesel power plants

The ITB for the decommissioned Aplaya-GenSan power plant package states that the sale will include the structures, plant equipment, auxiliaries and accessories of the Aplaya Diesel Power Plant and the General Santos Diesel Power Plant in Mindanao.

Interested parties should submit a Letter of Interest (LOI) to PSALM not later than 5 p.m. of 12 September 2008.

Interested investor groups are also required to pay a non-refundable fee of USD1,000.00 and execute a Confidentiality Agreement and an Undertaking with PSALM on or before 15 September 2008.

The Pre-Bid Conference for prospective bidders of the Aplaya-GenSan power assets is set on 26 September 2008 at the PSALM offices in Makati City, while the Bid Date is slated on 14 November 2008.

Situated in the locality of Jasaan, Misamis Oriental, or approximately 27 kilometers east of Cagayan de Oro City, the Aplaya diesel plant consists of six 18-MW units which were commissioned between 1979 and 1982.

The General Santos Diesel Power Plant, on the other hand, consists of three 7.44-MW turbines that run on either bunker or diesel fuel types. The plant is located in the outskirts of General Santos City, in Barrio Calumpang, South Cotabato.

Panay-Bohol generating diesel power plants

Investor groups interested in bidding for the Panay-Bohol diesel power complex will have until 16 September to submit a LOI. The Confidentiality Agreement, Undertaking, and Participation Fee of USD2,000.00 should be submitted not later than 5 p.m. of 17 September 2008.

PSALM will conduct the Pre-bid Conference for prospective bidders on 25 September. The bidding for the Panay-Bohol power assets will be held on 12 November 2008.

The Panay Diesel Power Plant consists of the 36.5-MW Panay 1 Diesel Power Plant and the 110-MW Panay 3 Diesel Power Plant. Panay 1 was commissioned in 1979, while Panay 3, also known as the Pinamucan Diesel Power Plant, was relocated from its Batangas site after its Build-Operate-Transfer contract with Enron Power Development Corporation expired in 2003. The plant was transferred to its present location to prevent a potential near-term power shortage and to provide voltage stabilization in the island of Panay.

Panay 1 and 3, which are the only land-based National Power facilities in the Panay island, are peaking plants that provide ancillary services such as backup power, load following, system frequency, and voltage regulation.

Amlan generating hydro plant

The LOI submission deadline for interested parties in the second sale process for the Amlan hydro plant is on 17 September 2008.

The execution of the Confidentiality Agreement and Undertaking, and the payment of the Participation Fee worth USD500.00 is on or before 5 p.m. of 19 September 2008.

PSALM will hold the Pre-Bid Conference for prospective bidders of the Amlan power facility on 01 October 2008, while the bidding will be conducted on 10 December 2008.

Located in Negros Oriental, the Amlan hydroelectric plant is the first power facility to be constructed in the province. It consists of two horizontal shaft type 400-kilowatt turbine generators and is designed to operate as a base-load plant supplying power to the town of Amlan and nearby villages.

As in all its previous bid exercises, PSALM will adopt the two-envelope bidding system, with all the assets being sold on an "as is where is" basis.

Strategic Communications and Partnership Division
Tel. No. (632) 9029067