PSALM negotiates OMSC for Naga complex

21 Mar 2012

The Power Sector Assets and Liabilities Management (PSALM) Corporation is negotiating a six-month Operation and Maintenance Service Contract (OSMC) for the Naga Power Plant Complex (NPPC) with SPC Power Corporation (SPC) pending the conduct of the second round of bidding for a one-year OMSC.

According to PSALM President and Chief Executive Officer Emmanuel R. Ledesma Jr., the negotiated procurement for the services of SPC to operate and maintain the 145.8-megawatt NPPC will ensure the continuous operation of the Cebu-based power facility.

"Entering into an OMSC with SPC will allow minimal disruption of NPPC's operation as SPC is currently operating the complex pursuant to its outstanding contract with the National Power Corporation (NPC)," Ledesma said.

The first bidding for the procurement of the OMSC for the Naga complex was declared a failure by the PSALM Bids and Awards Committee when no bid was received on the bid opening date last 27 February 2012.

PSALM is seeking the services of an operation and maintenance operator for the NPPC in anticipation of the expiration of the Rehabilitate-Operate-Maintain-and-Manage Agreement between NPC and SPC on 25 March 2012.

Ledesma, however, stressed that the negotiated procurement with SPC does not preclude PSALM from pursuing the privatization of the NPPC.

As successor-owner to NPC pursuant to the Electric Power Industry Reform Act, PSALM procures the fuel requirements of the NPPC while awaiting the asset's privatization.

The NPPC consists of the 106.8-MW Naga Coal Thermal Power Plants 1 and 2 and the 39-MW Naga Diesel Power Plant located in Naga, Cebu.

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