PSALM opens Round 2 of Naga plant sale

27 Aug 2013

The Power Sector Assets and Liabilities Management (PSALM) Corporation on Tuesday, 27 August 2013, commenced the second round of bidding for the 153.1-megawatt (MW) Naga Power Plant through an Invitation to Bid (ITB).

The ITB states that interested parties must submit to PSALM a Letter of Interest (LOI) not later than 5:00 p.m. on 04 September 2013, which is the LOI Submission Deadline.

Participants will likewise be required to pay a nonrefundable participation fee of PhP120,000 not later than 5:00 p.m. of 04 September 2013, and submit a Confidentiality Agreement and Undertaking with PSALM not later than 5:00 p.m. of 06 September 2013. This is also the prerequisite for the issuance of the Bidding Package.

PSALM will hold the Pre-Bid Conference for the sale of the Naga Power Plant on 12 September 2013, 2:00 p.m., at the PSALM office in Ayala Avenue, Makati City.

Deadline for the submission of bids is on 15 October 2013 at 12:00 noon, after which the opening and evaluation of bids will follow.

PSALM is optimistic that it will be able to bid out the Cebu-based power asset within the year. "Pursuant to the PSALM Board's approval of the conduct of a second round of bidding, we are looking forward to successfully bidding out the Naga Power Plant this year," PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. said.

PSALM earlier reported that the first round of bidding for the Naga Power Plant was declared a failure after a single prospective bidder fully complied with the documentary requirements.

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 coal, bunker C oil, and diesel 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
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