13 Jan 2010
The Power Sector Assets and Liabilities Management (PSALM) Corporation yesterday (13 January 2010) commenced the bidding process for the National Power Corporation's contracted capacity in the 1,200-megawatt (MW) Ilijan Natural Gas Combined Cycle Power Plant, seeking to hurdle the 70% privatization threshold for independent power producer (IPP) contracts in the Luzon and Visayas grids this year.
The Invitation to Bid (ITB) for IPP Administrator (IPPA) to manage the Ilijan capacity, which signals the start of PSALM's sale process for the Southern Luzon-based power asset, will be published for three consecutive days in local newspapers.
Interested investors wishing to participate in the bidding are required to submit to PSALM a letter of interest not later than 29 January 2010.
The interested parties will also have until 05 February 2010 to execute a Confidentiality Agreement and an Undertaking with PSALM, and pay the participation fee of USD10,000.00 to avail themselves of the Bidding Package, which will be issued from 18 January to 08 February 2010.
PSALM will conduct the Pre-bid Conference for the Ilijan IPPA appointment on 11 February 2010. The bidding is set on 16 April 2010.
Located in Ilijan in the Southern Luzon province of Batangas, the Ilijan IPP plant is being operated by the Korea Electric Power Corporation (KEPCO) through KEPCO Ilijan Corporation.
Republic Act No. 9136, the Electric Power Industry Reform Act, requires PSALM to privatize at least 70% of the contracted capacities of the IPPs in the Luzon and Visayas grids, which is the remaining precondition to the implementation of open access and retail competition. ###
Corporate Communications Division