PSALM launches IPPA selection for Unified Leyte

31 Jul 2013

The Power Sector Assets and Liabilities Management (PSALM) Corporation has commenced the selection process for the Independent Power Producer Administrators (IPPAs) for the Unified Leyte Geothermal Power Plants (ULGPP) through an Invitation to Bid (ITB) published last Wednesday, 31 July 2013.

PSALM said an interested party can participate as an IPPA for the "bulk energy" and/or the "strips of energy."

An IPPA can win the rights to "strips of energy" from the Visayas-based geothermal plants that range from one (1) megawatt (MW) up to a maximum of 40 MW. PSALM explained that out of the 240 MW sum of strips, only 200 MW will be offered to IPPAs. The 40 MW, which will remain with PSALM, will serve as security capacity.

The IPPA for the bulk energy will have the rights to the capacity in excess of the 240-MW sum of strips. The obligation to trade the Unified Leyte's total output (bulk and sum of strips), as well as the necessary registration applications required by the Wholesale Electricity Spot Market shall lie solely with the IPPA for the bulk energy.

PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. explained that the sale structure of the Unified Leyte IPPA encourages diversification in the market. "This bid is not just limited to generation companies, given that even distribution utilities including electric cooperatives, and other interest groups can participate and win as well" Mr. Ledesma said.

The ITB specified that interested parties must submit a Letter of Interest not later than 5:00 p.m. of 09 August 2013. To acquire the bidding package, participants also need to execute a confidentiality agreement and an undertaking with PSALM, and pay a nonrefundable participation fee of PhP200,000.00 for the bulk energy and PhP50,000.00 for the strips of energy on or before 14 August 2013.

The pre-bid conference for the Unified Leyte IPPA selection is on 28 August 2013, while the bidding will be held on 29 October 2013.

The ULGPP is composed of several geothermal units located in Tongonan, Leyte. These are the 125-MW Upper Mahiao, 232.5-MW Malitbog and 180-MW Mahanagdong power plants, and the 51-MW optimization plants. The ULGPP is covered by power purchase agreements between the National Power Corporation and the Energy Development Corporation.

Strategic Communications and Partnership Division
Tel. No. (632) 9029067