26 Jul 2013
The Power Sector Assets and Liabilities Management (PSALM) Corporation still hopes to successfully privatize the 153.1-megawatt (MW) Naga Power Plant within the year after the first round of bidding was declared a failure.
"We will conduct a second round of bidding pursuant to the PSALM Board's approval and we hope to successfully bid it out this year," PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. said.
On 15 July 2013, PSALM through its Privatization Bids and Awards Committee (PBAC) declared a failure of bidding for the Cebu-based power asset after only one (1) bidder submitted Documentary Deliverables that were deemed compliant by the PBAC.
PSALM reported that, of three (3) bidders who submitted the required documents, only SPC Power Corporation complied with the requirements set by the PBAC.
Five (5) investor groups originally took interest in the Naga plant bid by fulfilling the initial requirements, namely, the submission of a Letter of Intent, the payment of a nonrefundable participation fee of PhP120,000, and the execution of a Confidentiality Agreement and Undertaking with PSALM. These are D.M. Wenceslao and Associates, Inc.; DMCI Power Corporation; PowerOne Ventures Energy, Inc.; Quezon Power (Philippines) Ltd. Co.; and SPC.
Located in Colon, Naga City, Cebu, the Naga Power Plant consists of two (2) thermal power plants and one (1) diesel-fired power plant that use a combination of diesel, bunker C oil, and coal as fuel. These are the 52.5-MW Cebu 1 and 56.8-MW Cebu 2 coal-fired thermal power plants, and the 43.8-MW Cebu Diesel Power Plant 1 composed of six (6) 7.3-MW bunker-C fed power units.
Strategic Communications and Partnership Division