Prospective bidders troop to Unified Leyte IPPA bidding

28 Aug 2013

A slew of prospective bidders have expressed interest in the selection and appointment of the Unified Leyte Geothermal Power Plant (ULGPP) Independent Power Producer Administrators (IPPAs), the Power Sector Assets and Liabilities Management (PSALM) Corporation announced recently.

Specifically, PSALM said that ten (10) prospective bidders are eyeing the ULGPP IPPA for the bulk energy, namely: Aboitiz Renewables, Inc.; DMCI Power Corporation; FDC Utilities, Inc. (FDCUI); Global Business Power Corporation; Marubeni Corporation; Philippine Associated Smelting and Refining Corporation (PASAR); PowerOne Ventures Energy Inc.; Trans-Asia Oil and Energy Development Corporation; Unified Leyte Geothermal Energy Inc.; and Vivant Energy Corporation.

Meanwhile, PSALM said twenty-one (21) interested parties private power firms, industrial corporations, and electric cooperatives, among others are participating in the IPPA selection for the strips of energy. These are Aboitiz Energy Solutions, Inc.; AC Energy Holdings, Inc.; APO Cement Corporation; DMCI Power Corporation; Emerging Power Resource Holding Corporation; FDCUI; Global Business Power Corporation; Good Friends Hydro Resources Corporation; Leyte II Electric Cooperative, Inc.; LIDE Management Corporation; LIDE-PASAR Power Corporation; Marubeni Corporation; Negros Occidental Electric Cooperative, Inc.; PASAR; Philippine Phosphate Fertilizer Corporation; PowerOne Ventures Energy Inc.; Renagmec Power Corporation, Inc.; Trans-Asia Oil and Energy Development Corporation; Unified Leyte Geothermal Energy Inc.; Vivant Energy Corporation; and Waterfront Airport Hotel & Casino.

PSALM noted that the list of prospective bidders in the ULGPP IPPA selection was finalized with the lapse of the deadline for the submission of initial requirements, namely: submission of a Letter of Interest not later than 5:00 p.m. of 12 August 2013; and execution of a confidentiality agreement and an undertaking with PSALM, and payment of a nonrefundable participation fee of PhP200,000 for the bulk energy and PhP50,000 for the strips of energy on or before 14 August 2013.

According to PSALM President and CEO Emmanuel R. Ledesma, Jr., "this remarkable turnout of bidders, which notably includes the biggest players in the industry, indicates not only the private sector's support for the government's privatization initiatives, but also the private sector's recognition of the reforms being undertaken by PSALM to ensure that the biddings are conducted in the most professional and transparent manner, consistent with the Aquino administration's 'daang matuwid' policy."

"To familiarize themselves with PSALM's bidding procedures and have a better appreciation of the salient features of this bidding, the prospective bidders attended the pre-bid conferences that we scheduled on 28 August 2013" Mr. Ledesma added.

Mr. Ledesma specified that all the 10 prospective bidders attended the pre-bid conference for the ULGPP IPPA for bulk energy that was held at 9:00 a.m. at the Peninsula Manila in Makati City. The pre-bid conference for the ULGPP IPPA for strips of energy, which commenced at 1:30 p.m. in the same venue, was attended by 20 investor groups.

Mr. Ledesma added that the opening of bids for ULGPP IPPAs is on 29 October 2013 right after the lapse of the 10:00 a.m. bid submission deadline.

An IPPA can win the rights to strips of energy from the ULGPP that range from one (1) megawatt (MW) up to a maximum of 40 MW. Out of the 240-MW sum of strips, only 200 MW will be offered to IPPAs, with the 40 MW remaining with PSALM as security capacity.

The IPPA for the bulk energy will have the right to the capacity in excess of the 240-MW sum of strips. The obligation to trade ULGPP'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.

The ULGPP is comprised of the 125-MW Upper Mahiao, 232.5-MW Malitbog, and 180-MW Mahanagdong power plants, and the 51-MW optimization plants. Located in Tongonan, Leyte Province, 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