STX Marine submits lowest bid for Malaya TPP OMSC

11 Aug 2015

Current Malaya Thermal Power Plant (MTPP) operator STX Marine Services Co. Ltd. has submitted the lowest bid for the Rizal-based plant's Operation and Maintenance Service Contract (OMSC), the Power Sector Assets and Liabilities Management (PSALM) Corporation reported recently.

At the bidding conducted by PSALM in Diliman, Quezon City on 03 August 2015, STX Marine emerged as the lowest bidder with its PhP297-million (PhP297,337,600.00) bid for the one-year service contract, which consists of the service fee amounting to PhP270 million (PhP269,920,000.00), and the operating fee worth PhP27 million (PhP27,417,600.00).

STX Marine bested the PhP349-million (PhP348,999,888.00) offer of SPC Malaya Power Corporation, the second bidder that participated in Monday's bid opening activity. Broken down, SPC's bid is as follows: PhP337 million (PhP336,999,888.00) for the service fee, and PhP12 million (PhP12,000,000.00) for the operating fee.

The Approved Budget for the Contract (ABC) for the procurement project is PhP457 million (PhP457,277,184.00), which is divided into the ABC for the service fee worth PhP393 million (PhP393,120,000.00), and the ABC for the operating fee in the amount of PhP64million (PhP64,157,184.00).

PSALM noted the bids submitted by the contending bidders were within the total ABC and their corresponding components. PSALM added that both STX Marine and SPC were rated as "Passed" in accordance with the non-discretionary "pass/fail" criterion specified in the Implementing Rules and Regulations of Republic Act 9184, the Government Procurement Reform Act.

"Based on the documents submitted to PSALM, STX Marine emerged as the lowest bidder of the Malaya TPP OMSC bidding. However, in accordance with government procurement policies, the bidder still has to undergo post-qualification before the contract can be awarded," PSALM President and Chief Executive Officer Lourdes S. Alzona said.

"The awarding of the Malaya TPP OMSC will also be subject to the approval by the PSALM Board of Directors," Ms. Alzona added.

Four (4) firms originally signified interest in the OMSC procurement project. These include Kepco KPS Philippines, OGAS Solutions (Thailand) Ltd., SPC, and STX Marine. However, only SPC and STX Marine submitted bids prior to the Bid Submission Deadline.

Situated in Pililia, Rizal Province, the Malaya plant was rehabilitated in 1995 by the Korea Electric Power Corporation under a 15-year rehabilitate-operate-manage-maintain agreement. It consists of a 300-megawatt (MW) unit with a once-through type boiler and a 350-MW unit fitted with a conventional boiler.

The Malaya power plant was designated as a must-run unit (MRU) by the Department of Energy (DOE) to address supply deficiency when operating power plants in the grid suddenly bog down or become unavailable.

It will operate as an MRU until the DOE finalizes its privatization schedule.

STX Marine's current contract with PSALM for the Malaya TPP is until 25 October 2015.

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