Korean company submits lowest bid for Malaya OMSC

12 Aug 2014

Korea-based STX Marine Service emerged as the lowest bidder as read for the procurement of the one-year Operation and Maintenance Service Contract (OMSC) for the 650-megawatt (MW) Malaya Thermal Power Plant (TPP), the Power Sector Assets and Liabilities Management (PSALM) Corporation has reported on Tuesday, 12 August 2014.

STX is a provider of maritime solutions, and among its services are ship management, marine transportation and brokerage, and ship design, construction, leasing and repair. The company is also engaged in the design, construction, supervision and repair of system or equipment related to energy.

STX's bid of PhP302 million (PhP302,149,988.64) edged out the PhP429-million (PhP428,777,888.00) offer of SPC Malaya Power Corporation, the current O&M provider of the Malaya TPP.

Another company, BERGS Energy Solutions and Technology Corp., signified interest and purchased the Bidding Documents but did not submit a bid.

Specifically, STX offered PhP242 million (PhP241,720,000.00) for the Fixed Service Fee component of the bid, and PhP60 million (PhP60,429,988.64) for the Operating Fee. In contrast, SPC Malaya offered bids amounting to PhP342 million (PhP342,066,772.00) and PhP87 million (PhP86,711,888.00) respectively for the Fixed Service Fee and the Operating Fee.

PSALM, through its Bids and Awards Committee, said all bids are within the Approved Budget for the Contract of PhP451 million (PhP451,301,265.86), of which the Fixed Service Fee cap is PhP365 million (PhP364,590,149.06) and the Operating Fee, PhP87 million (PhP86,711,116.80).

"In accordance with government procurement policies, the results of the bidding are still subject to post-qualification before any winning bidder can be formally proclaimed," PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. noted.

The Malaya TPP is located in Pililla, Rizal Province, and is being managed by PSALM through an OMSC while it awaits privatization. It consists of a 300-MW unit with a once-through type boiler and a 350-MW unit fitted with a conventional boiler. It was rehabilitated in 1995 by the Korea Electric Power Corporation under a 15-year rehabilitate-operate-manage-maintain agreement.

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