Unified Leyte IPPA bidding launched

19 May 2010

The Power Sector Assets and Liabilities Management (PSALM) Corporation has commenced the appointment of an independent power producer administrator (IPPA) to manage the contracted capacity in the Unified Leyte geothermal power plants located in Tongonan, Leyte Province.

With its publication of the Invitation to Bid starting last Monday (17 May 2010) until Wednesday (19 May 2010), PSALM formally opened to investors the sale process for the IPPA of Unified Leyte, which has an installed capacity of 640 megawatts (MW).

PSALM's initial requirement for prospective bidders is the submission of a Letter of Interest not later than 24 May 2010.

The interested parties will then be required to execute a confidentiality agreement and undertaking with PSALM, and pay a non-refundable participation fee of USD5,000.00. The deadline for these requirements is 5 p.m. Thursday, 27 May 2010. The submission of these requirements serves as the prerequisite for obtaining the Bidding Package.

The Pre-bid Conference will be conducted on 16 June 2010, while the Bid Submission Deadline will be 12 noon, 30 July 2010.

The appointed Unified Leyte IPPA will manage the contracted annual energy output from the power purchase agreements between National Power Corporation and the Energy Development Corporation (EDC), which will expire in 2025 and 2026.

The EDC is the owner of the steam plants, which include the 125-MW Upper Mahiyao, 232-MW Malitbog, 180-MW Mahanagdong, and 51-MW optimization plants.

In a related activity, PSALM reported that four prospective bidders attended the Pre-bid Conference for the appointment of an IPPA to administer the contracted capacity in the 650-MW Malaya Thermal Power Plant. Aside from discussing the Bidding Procedures, PSALM also apprised the participants on the commercial structure of the bid.

The winning IPPA is expected to take ownership of the Malaya plant in about a year's time as the 15-year rehabilitate-operate-manage-maintain agreement with Korea Electric Power Corporation will expire in the first quarter of 2011.

Corporate Communications Division
Tel. No. (632) 9029067