Investors signify interest in Unified Leyte IPPA bidding

28 May 2010

At least four investor groups have signified interest in the government's selection of an independent power producer administrator (IPPA) to manage the contracted capacity in the 640-megawatt (MW) Unified Leyte geothermal power plants.

The Power Sector Assets and Liabilities Management (PSALM) Corporation said the interested parties, which have completed the initial requirements for the bid exercise, are now ready to conduct their Due Diligence on the Unified Leyte IPP located in Tongonan, Leyte Province.

Responding to the Invitation to Bid for the Unified Leyte IPPA auction published last 17 May 2010 to 19 May 2010, the prospective bidders submitted their respective Letters of Interest to PSALM before the deadline lapsed last Monday, 24 May 2010. They also executed a confidentiality agreement and undertaking with PSALM and paid the non-refundable USD5,000 participation fee prior to the 27 May 2010 deadline.

The Pre-bid Conference, which discusses in detail PSALM's Bidding Procedures for the selection, will be conducted next month at the PSALM Office in Makati City.

The Bid Submission Deadline for the Unified Leyte IPPA will be 12 noon of 30 July 2010.

Once appointed, the Unified Leyte IPPA will manage the contracted annual energy output from the power purchase agreements between National Power Corporation and Energy Development Corporation (EDC). These contracts 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.

Corporate Communications Division
Tel. No. (632) 9029067