PSALM bids out one-year contract for Malaya plant operation and maintenance

31 May 2018

The Power Sector Assets and Liabilities Management Corporation (PSALM) declared Mindoro Grid Corporation as the lowest bidder at the bid opening it conducted on 30 May 2018 for the procurement of the Operation and Maintenance Service Contract (OMSC) for the 650-megawatt (MW) Malaya Thermal Power Plant (TPP).

With its PhP227 million (PhP227,040,000.00) bid for the one-year service contract, Mindoro Grid Corporation bested the PhP258 million (PhP258,720,000.00) offer of Soosan ENS Co., Ltd., the other bidder that participated in the bid opening activity.

The Malaya TPP OMSC has an approved budget of PhP264 million which will be sourced from PSALM’s 2018 and 2019 Corporate Operating Budgets.

In accordance with the Implementing Rules and Regulations of Republic Act No. 9184, the Government Procurement Reform Act, the bidder will need to undergo post-qualification evaluation before the contract can be awarded.

Part of the responsibilities under the service contract include the day-to-day upkeep, management and maintenance or repair of the power plant and its equipment.

The Malaya TPP is being managed by PSALM through an OMSC. The current operator of the power plant is STX Marine Service Co. Ltd whose contract will expire on 25 August 2018.

Located in Pililla, Rizal, the Malaya TPP was designated as a must-run unit (MRU) by the Department of Energy in 2014. As an MRU, it is compelled to run and provide the needed power supply as deemed necessary in order to ensure reliability of power supply in the Luzon grid, particularly in times of supply shortfall, system security, and voltage support.

In 1995, it was rehabilitated by Korea Electric Power Corporation under a 15-year rehabilitate-operate-manage-maintain agreement.

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