12 Feb 2010
The Power Sector Assets and Liabilities Management (PSALM) Corporation yesterday (11 February 2010) met with prospective independent power producer administrators (IPPAs) of the government's 1,200-megawatt (MW) contracted capacity in the Ilijan Natural Gas Combined Cycle Power Plant to discuss the bidding procedures.
At least five interested parties attended the pre-bid conference conducted by PSALM at its head office in Makati City. The parties received their bidding packages after satisfying the preliminary requirements for the bidding process namely, the submission of a Letter of Interest, the execution of a Confidentiality Agreement and an Undertaking with PSALM, and the payment of the USD10,000.00 participation fee. The investors are currently undertaking their respective due diligence.
At the Pre-bid Conference, PSALM stressed the importance of appointing an IPPA to manage the Ilijan contracted capacity as its success leads to the completion of the final precondition to the implementation of open access and retail competition in the Philippine power sector as stipulated in the Electric Power Industry Reform Act.
PSALM announced that another forum would be held on 24 February 2010 to discuss the commercial structure of the Ilijan privatization to provide the prospective bidders a better understanding of the whole transaction.
PSALM has set 16 April 2010 as the bid date for the selection of an IPPA to administer the Ilijan capacity.
In a separate development, PSALM announced that it would hold a forum for stakeholders on the ongoing privatization of the 246-MW Angat Hydroelectric Power Plant (HEPP) on Friday, 12 February 2010.
Recognizing that the sale of the Angat HEPP is a major concern of many stakeholders, particularly the residents of Metro Manila and neighboring provinces, PSALM organized the discussion to stress, among other details, that the use of water from Angat dam for domestic purposes and irrigation enjoy priority over power generation, as specified in law and in the bidding parameters for the Angat HEPP.
Officials from concerned government agencies, and representatives of various interest groups and local government units are expected to attend the forum to share their insights on the Angat HEPP privatization.
PSALM launched the sale of the Angat HEPP last 10 January 2010 through the publication of an Invitation to Bid. The government power privatization firm has set the plant's bidding on 28 April 2010.
The Angat HEPP operates through the Angat Dam, which supplies the water requirements of Metro Manila, Bulacan - the host province - and neighboring provinces.
Corporate Communications Division