PSALM sets 3rd round of bidding for Naga plant

06 Feb 2014

The Power Sector Assets and Liabilities Management (PSALM) Corporation has commenced the third round of bidding for the sale of the 153.1-megawatt (MW) Naga Power Plant on Wednesday, 06 February 2014, with the publication of the Invitation to Bid (ITB).

"After obtaining the necessary approval from the Board of Directors, we have formalized the commencement of the Naga sale process through the ITB publication, which will run in local newspapers from 06 February 2014 to 08 February 2014," PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. said.

"As stated in the ITB, interested parties must submit to PSALM a Letter of Interest and pay the nonrefundable participation fee of PhP120,000.00 not later than 5:00 p.m. on 14 February 2014. As prerequisite for the issuance of the Bidding Package, they must also submit a Confidentiality Agreement and Undertaking with PSALM on or before 5:00 p.m. of 17 February 2014," Mr. Ledesma specified.

Mr. Ledesma said PSALM will hold the Pre-Bid Conference for the sale of the Naga Power Plant on 24 February 2014, 2:00 p.m., at the PSALM office in Ayala Avenue, Makati City.

The deadline for the submission of bids is on 31 March 2014 at 12:00 noon, with the opening and evaluation of bids commencing thereafter.

PSALM held the bidding for the Cebu-based power facility twice last year.

On 15 July 2013, PSALM through its Privatization Bids and Awards Committee (PBAC) declared a failure of the first round of bidding for the Cebu-based power asset after only one (1) bidder submitted Documentary Deliverables that were deemed compliant by the PBAC.

The second round of bidding, held on 07 November 2013, was likewise declared a failure after only one (1) bidder submitted a bid.

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.

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