08 Nov 2013
The Power Sector Assets and Liabilities Management (PSALM) Corporation President and Chief Executive Officer Emmanuel R. Ledesma, Jr. recently reported that the selection and appointment of Independent Power Producer Administrators (IPPAs) for the Strips of Energy and Bulk Energy of the contacted capacities in the Unified Leyte Geothermal Power Plant (ULGPP), which were held in Makati City on Thursday (07 November 2013) and Friday (08 November 2013), respectively, have been successful.
ULGPP IPPA for Strips of Energy
At the bid opening activity it held on Thursday (07 November 2013), seven (7) Highest Ranking Bidders for the IPPAs for the Strips of Energy (IPPA-Strips) portion of the contacted capacities in the ULGPP were declared.
Mr. Ledesma said that, based on the bidding results, the allotment of the total 200 strips of energy, or a total 200 megawatts (MW), for the ULGPP IPPA-Strips are as follows:
- 40 MW or 40 strips of energy to FDC Utilities, Inc. (FDCUI), which offered a generation payment of PhP5.2588 per kilowatt-hour (kWh);
- 40 MW to Unified Leyte Geothermal Energy Inc. (ULGEI), which bid at PhP5.2100/kWh;
- 40 MW to Trans-Asia Oil and Energy Development Corporation, which bid at PhP5.0166/kWh;
- 40 MW to Aboitiz Energy Solutions, Inc., which bid at PhP4.9188 per kWh;
- three (3) MW to Waterfront Mactan Casino Hotel Inc., which bid at PhP4.9000/kWh;
- 20 MW to Good Friends Hydro Resources Corporation, which bid at PhP4.8800/kWh;
- and 17 MW to Vivant Energy Corporation, which bid at PhP4.6629/kWh.
All the highest ranking bids for the 200 strips of energy, he noted, exceeded the Reserve Price that was set by the PSALM Board.
Mr. Ledesma added that following the bidding results, Vivant's PhP4.6629/kWh offer - the bid price for the 200th strip of energy - is the winning price for the ULGPP IPPA-Strips.
"As stipulated in the Bidding Procedures, the winning price, which is the uniform generation payment that will be adopted by all the winning bidders in the ULGPP IPPA-Strips, will either be the winning bid price for the 200th strip of energy or, if there will be less than 200 strips, the winning price closest to the Reserve Price," Mr. Ledesma explained.
Mr. Ledesma noted that the highest ranking bidders will still have to undergo and pass the post-qualification stage before being declared as winning bidders. "The PSALM Privatization, Bids Awards Committee (PBAC) will conduct post-qualification on the highest ranking bidders to determine the accuracy, authenticity and completeness of all their documentary submissions, including the standby letters of credit and their full compliance with the Bidding Procedures," he said.
He stated that a total of eleven (11) bidders participated in the selection and appointment for the ULGPP IPPA-Strips, and submitted their offers prior to the 12:00 noon bid submission deadline. These are: (1) Aboitiz Energy Solutions; (2) AC Energy Holdings, Inc.; (3) FDCUI; (4) Good Friends Hydro; (5) Negros Occidental Electric Cooperative, Inc.; (6) PowerOne Ventures Energy Inc.; (7) Renagmec Power Corporation, Inc.; (8) Trans-Asia; (9) ULGEI; (10) Vivant; and (11) Waterfront.
ULGPP IPPA for Bulk Energy
Likewise, PSALM on Friday (08 November 2013) declared ULGEI as the highest among three (3) bidders that participated and tendered bids for the ULGPP IPPA for Bulk Energy.
ULGEI tendered a bid of PhP215 million for the ULGPP IPPA for Bulk Energy. ULGEI's bid is the only bid that met the Reserve Price set by the PSALM Board. The other two (2) bidders, which did not meet the Reserve Price, are Trans-Asia and Aboitiz Renewables, Inc.
"ULGEI will likewise undergo post-qualification stage before being declared as the winning bidder to determine the accuracy, authenticity and completeness of all their documentary submissions, including the standby letter of credit and their full compliance with the Bidding Procedures," Mr. Ledesma noted.
The ULGPP IPPA Structure
An IPPA can win the rights to strips of energy from the ULGPP that range from one (1) MW up to a maximum of 40 MW. Out of the 240-MW sum of strips, only 200 MW will be offered to the IPPAs, with the 40 MW remaining with PSALM as security capacity.
The IPPA for the Bulk Energy, on the other hand, 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 composed 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.
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