31 Mar 2014
The Power Sector Assets and Liabilities Management (PSALM) Corporation has declared Therma Power Visayas, Inc. as the highest bidder of the third round of bidding for the sale of the 153.1-megawatt (MW) Naga Power Plant.
"At the bidding conducted by PSALM today (31 March 2014) Therma Power emerged as the highest with its bid of PhP1.09 billion (PhP1,088,800,000.00)," PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. reported.
"Therma Power bested SPC Power Corporation, the second bidder, which bid PhP859 million (PhP858,999,888.88) for the Cebu-based Naga power facility," Mr. Ledesma added.
"The offers of Therma Power and SPC for the Naga plant both exceeded the Reserve Price set by the PSALM Board," Mr. Ledesma said.
"Subject to the confirmation and verification of the accuracy, authenticity and completeness of the documents submitted, including the standby letter of credit, PSALM will declare the winning bidder for the Naga plant at a later date in accordance with the Bidding Procedures," Mr. Ledesma said.
Mr. Ledesma likewise said that the condition of the sale provides that SPC has the "right to top" the price of the winning bidder for the Naga plant by 5%, as provided under the Land Lease Agreement executed between PSALM and SPC in 2009 for the Naga Land-based Gas Turbine.
PSALM previously reported that the Department of Justice (DoJ) has confirmed in an opinion dated 09 January 2013 that the "right-to-top" provision included in PSALM's bidding documents was not in violation of the rules on competitive bidding.
As previously disclosed by PSALM, the Naga plant will be sold as a merchant plant, or without an attached power supply contract. The sale will likewise include a land lease agreement for the land underlying the power plants.
The Naga plant consists of 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. The power plants are located in Colon, Naga City, Cebu.
Strategic Communications and Partnership Division |