PSALM rebids Naga complex O&M contract

30 May 2012

The Power Sector Assets and Liabilities Management (PSALM) Corporation has reopened the selection process for an operator for the 145.8-megawatt (MW) Naga Power Plant Complex located in Naga City, Cebu.

"We are now ready to commence the re-bidding for the procurement of the Operation and Maintenance Service Contract (OMSC) for the Naga facility after getting the approval of the PSALM Board on the project last March," said PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr.

The Naga complex OMSC has an approved budget of PhP349 million (PhP348,910,000), and will cover a period of one year.

The Invitation to Bid published on Wednesday (30 May 2012) states that interested parties must have completed a contract similar to the Naga OMSC within five years from the date of submission and receipt of bids. Prospective bidders are also required to pay a non-refundable fee of PhP75,000 for the bidding documents.

PSALM has scheduled the Pre-Bid Conference on 08 June 2012, 2 p.m., at its main office in Makati City.

The deadline for submission and receipt of bids is on 21 June 2012, 2 p.m., with the evaluation of bids following shortly at 2:15 p.m.

The first round of bidding for the Naga complex OMSC conducted on 27 February 2012 was declared a failure because no bid was received by the PSALM Bids and Awards Committee.

Pending the conduct of the re-bidding for a one-year OMSC, PSALM entered into a six-month contract with SPC Power Corporation to ensure the continued operation of the Visayas-based complex after the Rehabilitate-Operate-Maintain-and-Manage Agreement between National Power Corporation and SPC expired last 25 March 2012.

The OMSC with SPC will expire on 25 September 2012.

The Naga complex consists of three power plants that use a combination of diesel, bunker C oil and coal as fuel. These are the coal-fired 50-MW Cebu Thermal Power Plant 1 and 56.8-MW Cebu Thermal Power Plant 2; and the 39-MW Cebu Diesel Power Plant 1 which consists of six diesel-fed power units with a capacity of 6.5 MW each.

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