The Power Sector Assets and Liabilities Management Corporation (“PSALM”) Privatization, Bids and Awards Committee (the “Committee”) invites interested parties to participate in and bid in the second round of bidding for the privatization of:
The 100 MW Power Barge (PB) 118 located in Barangay San Roque, Maco, Compostela Valley
(the “Asset”). The Asset is being privatized on an “as is where is” basis. Subject to the terms of the final transaction documents, the Asset must remain in its current location at Barangay San Roque, Maco, Compostela Valley for at least three (3) years.
Interested parties must submit a Letter of Interest (“LOI”) to the Committeewhich shall state the full name, address, telephone and fax numbers of the interested party, name of the principal contact, and signed by an authorized representative. All LOIs must be received by the Committee at the PSALM Office with address at the 7th Floor Bankmer Building, 6756 Ayala Avenue, Makati City, not later than 5:00 p.m. on 26 March 2009 (the “LOI Submission Deadline”). Only interested parties that submit an LOI by the LOI Submission Deadline shall be allowed to participate further in the privatization of the Asset.
As a prerequisite to the receipt of the Bidding Package, interested parties shall execute a Confidentiality Agreement and an Undertaking pursuant to Section 78 of RA 9136, both in the forms provided by PSALM, and pay a non-refundable fee in the amount of Two Thousand U.S. Dollars (U.S. $ 2,000.00) (the “Participation Fee”). The Participation Fee shall be either in cash, manager’s check, or cashier’s check. All bank charges, if any, shall be for the account of the interested party. The Confidentiality Agreement, Undertaking, and Participation Fee must be received by the Committee on or before 5:00 p.m. on 27 March 2009 to entitle an interested party to further participation in the privatization of the Asset.
The Bidding Package, which includes the Bidding Procedures, shall be issued during office hours (9:00 a.m. to 5:00 p.m.) from 18 March 2009 to 31 March 2009 (the “Deadline”) at the PSALM Office. Only interested parties or consortium (as described below) who have been issued the Bidding Package by the Deadline will be allowed to participate further in the privatization of the Asset.
An interested party that submits the LOI must be the party that will participate in the privatization process, submit a bid, and enter into the pertinent agreements. Once an interested party submits the Confidentiality Agreement and Undertaking and pays the Participation Fee, such interested party may no longer be substituted in the privatization process, except through a consortium. In accordance with the terms and conditions of the Bidding Procedures, among the requirements for a consortium are: (i) such interested party must own at least a majority of the shares outstanding and entitled to vote in such consortium; (ii) the consortium must be a juridical entity; and (iii) a letter requesting to bid through consortium must be submitted to the Committee on or before the deadline set for the same in the Bidding Procedures.
The schedule of the bidding activities shall be as follows:
Due Diligence : 17 March 2009 to 25 May 2009
Pre-Bid Conference : 07 April 2009, 2:00 p.m. at the PSALM Office
Bid Submission Deadline : 28 May 2009, 12:00 noon at the PSALM Office
References to the dates and times shall be based on Manila time. Should any of the above dates fall on a holiday, the deadline shall be extended to the same time of the immediately succeeding business day in Makati City.
A two-envelope bidding system will be adopted. Interested Parties will be required to post a bid security equivalent to One Million U.S. Dollars (U.S.$ 1,000,000.00) in the form of an irrevocable letter of credit, which must be acceptable to the Committee. The bid security of the winning bidder shall be substituted by a performance security to guarantee prompt, faithful, and complete performance of its obligations under the transaction. There are certain restrictions on the transfer of the Asset from its current location. The details of the privatization of the Asset are contained in the Bidding Package.
Letters of Interest, Confidentiality Agreements and Undertakings shall be addressed and submitted to: The Chairman, Privatization, Bids and Awards Committee, PSALM Corporation, 7th Floor, Bankmer Building, 6756 Ayala Avenue, Makati City, Philippines. Inquiries and clarifications shall be addressed to Mr. Lorenzo L. Jacinto II at the PSALM Office, at telefax number (632) 892-6123, or e-mail address lljacinto@psalm.gov.ph.
The Committee reserves the right to accept or reject any interested party or bidder or proposals or bids therefrom, or any part thereof, and/or to waive any defects contained therein and accept the offer advantageous to the Government, without offering any reason whatsoever. It does not assume any obligation to compensate or indemnify parties for any expense or loss that they may incur as a result of their participation in the privatization process, nor does it guarantee that an award will be made. Finally, it reserves the right to modify, supplement, or change the Bidding Procedures and other aspects of the privatization process at any time, including the schedule and the venue provided herein, for any reason whatsoever and without giving prior notice. Interested parties and/or bidders will be notified subsequently of such modifications, supplements, or changes.
PSALM Privatization, Bids and Awards Committee
(17, 18 and 19 March 2009)
