31 Jan 2023
The Power Sector Assets and Liabilities Management Corporation (PSALM) held its second and third pre-bid conferences on 25 and 27 January 2023, respectively, for the sale of the 165-megawatt Casecnan Hydroelectric Power Plant (“CHEPP” or “Casecnan Plant”). These serve as convenient venues for the interested bidders to inquire and clarify on the terms and conditions of the sale.
“We envision that the sale of the Casecnan Plant will be successful, efficient and judicious for PSALM and the winning bidder who will take over its management. This 2nd pre-bid conference paves the way for a good return on investment for the winning bidder, starting with a more market-responsive price and on an “as-is, where-is” and “cash” basis sale for the Casecnan plant,” Dennis Edward A. Dela Serna, PSALM President and Chief Executive Officer, said.
The two conferences enlightened bidders of their lingering queries on the bidding process and the potential concerns attendant to managing the Casecnan plant. Key issues discussed in-depth between and among the bidders, PSALM officials and the contingent from the National Irrigation Administration include (1) tax laws and regulations that could impact the successor company, (2) role of the winning bidder to lead the crafting of the Special Use Agreement in Protected Areas (SAPA) with the Department of Environment and Natural Resources, (3) water permits for power generation and irrigation, (4) other permits currently enforced or to be secured by the winning bidder, (5) observance of Indigenous Peoples (IP) rights when the new owner takes over the management of the plant, and (6) safety considerations prior to inspecting the plant.
The following fourteen (14) bidders have shown interest in bidding for the Casecnan plant:
1. Fresh River Lakes Corp.
2. Neptune Hydro, Inc.
3. Sta. Clara International Corp.
4. GigaAce 11, Inc.
5. Pan Pacific Renewable Power Phils. Corp.
6. Semirara Mining & Power Corporation
7. Global Hydro Power Corporation
8. Belgrove Power Corporation
9. Axia Power Holdings Philippines Corp.
10. Panasia Energy, Inc.
11. Hansan Solar Corporation
12. San Roque Power Corporation
13. Joint – EEI Power Corporation, Soosan ENS CO. LTD., Soosan INDUSTRIES CO. LTD.
14. Peakpoint, Inc.
The deadline for the submission of bids for the Casecnan Plant is on 28 March 2023, 12:00 noon at the PSALM Office in Quezon City. Interested parties are advised to send their inquiries to the Chairperson of the Privatization, Bids and Awards Committee (“PBAC”) through the email address of the PBAC Secretariat at pbacsec2022@psalm.gov.ph.
The CHEPP is a “run-of-river” type of power plant with limited impounding area, located at Sitio Pauan, Brgy. Villarica, Pantabangan, Nueva Ecija. The CHEPP was covered by a build-operate-transfer agreement which ended on 11 December 2021.
Strategic Communications and Partnership Division |