11 Mar 2015
The Power Sector Assets and Liabilities Management (PSALM) Corporation has initiated its selection and appointment of the Independent Power Producer Administrator (IPPA) for the Bulk Energy of the Unified Leyte Geothermal Power Plants (ULGPP), with its publication of the Invitation to Bid (ITB) in local newspapers beginning on Wednesday (11 March 2015) until Friday (13 March 2015).
"With the ITB publication, PSALM is once again offering the other component of PSALM's IPPA structure for the ULGPP - the IPPA for the Bulk Energy," PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. reported.
Mr. Ledesma said interested parties must submit a Letter of Interest in order to participate in the bidding process, the deadline of which is no later than 5:00 p.m. on 24 March 2015.
As indicated in the ITB, participants are required to execute a Confidentiality Agreement and Undertaking, and pay a non-refundable participation fee of PhP120,000.00, either in cash, manager's check or cashier's check. The deadline for the said requisites shall be on or before 5:00 p.m. on 30 March 2015.
PSALM will hold the Pre-bid Conference for interested bidders on 06 May 2015, while the due diligence will begin on 30 March 2015 until two (2) business day prior to the Bid Submission Deadline.
PSALM set the Bid Submission Deadline on 12 August 2015 at exactly 12:00 noon, followed with the opening and evaluation of bids at 12:30 pm of the same date.
The ULGPP IPPA Structure
Under PSALM's sale structure, the ULGPP IPPAs have been classified as IPPA for the Bulk Energy (IPPA Bulk) and IPPA for the Strips of Energy (IPPA Strips).
The IPPA Strips have the rights to the strips of energy that range from one (1) MW up to a maximum of 40 MW. Out of the 240 MW sum of strips, PSALM has successfully turned over 200 MW to seven (7) IPPAs in December last year, while 40 MW of which remain with PSALM as security capacity.
On the other hand, the IPPA Bulk 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 energy and sum of strips), including the registration required by the Wholesale Electricity Spot Market shall lie solely with the IPPA Bulk.
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. The ULGPP is covered by power purchase agreements between the National Power Corporation and the Energy Development Corporation.
Corporate Communications Division