Mt. Apo 1 and 2 IPPA bidding draws 9 investor groups

09 Jun 2014

"The selection and appointment of the independent power producer administrator (IPPA) for the output of the Mindanao I and II (Mt. Apo 1 and 2) Geothermal Power Plants has drawn the interest of nine investor groups," according to Power Sector Assets and Liabilities Management (PSALM) Corporation President and Chief Executive Officer Emmanuel R. Ledesma, Jr.

Mr. Ledesma made the announcement after the lapse of the deadlines for the initial requirements, namely: the submission of a Letter of Interest on 30 May 2014, and payment of the PhP120,000.00 non-refundable Participation Fee and the execution of a Confidentiality Agreement and Undertaking with PSALM on 06 June 2014.

Mr. Ledesma disclosed that out of the 10 investor groups which submitted letters of interest, nine have complied with the initial requirements, namely: (1) EDC Mindanao Geothermal Inc.; (2) FDC Misamis Power Corporation; (3) GDF SUEZ Energy Philippines, Inc.; (4) Good Friends Hydro Resources Corporation; (5) SMC Global Power Holdings Corporation; (6) SPC Power Corporation; (7) Therma Southern Mindanao, Inc.; (8) Trans-Asia Oil and Energy Development Corporation; and (9) Vivant Geo Power Corporation.

Mr. Ledesma reiterated that the deadline for the submission of bids is on 24 September 2014 at 12:00 noon, with the opening and evaluation of bids commencing thereafter. PSALM will hold the Pre-Bid Conference for the Mt. Apo 1 and 2 IPPA on 26 June 2014 at 2:00 P.M., at the PSALM office in Ayala Avenue, Makati City.

The bidding exercise is PSALM's first IPPA auction in the Mindanao region. The Mt. Apo IPPA will manage government's contracted energies in the Mt. Apo 1 and 2 plants, which are 390 gigawatt-hours (GWh) and 398 GWh per year, respectively.

The Mt. Apo 1 and Mt. Apo 2 geothermal power plants have a rated capacity of 54.24 MW each, and are located in Kidapawan City, North Cotabato. Owned and operated by the Energy Development Corporation, the power plants were commissioned on 15 February 1997 (Mt. Apo 1) and 17 June 1999 (Mt. Apo 2) under a build, operate, and own contract scheme. The cooperation period for both plants is 25 years, and the same will expire on 15 February 2022 and 17 June 2024 for Mt. Apo 1 and 2, respectively. ###

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