The Power Sector Assets and Liabilities Management Corporation (“PSALM”) Privatization, Bids and Awards Committee (the “Committee”) invites interested parties to participate in and bid for the Appointment as IPP Administrator for the:

Contracted capacity of the San Roque Multi-Purpose Hydroelectric Power Plant with an installed capacity of 345 MW and is located at San Manuel, Pangasinan
(“San Roque Contracted Capacity”);

Contracted capacity of the Bakun Hydroelectric Power Plant with an installed capacity of 70 MW and is located at Alilem, Ilocos Sur (“Bakun Contracted Capacity”);

and

Contracted energy of the Benguet Mini-Hydro with an aggregate installed
capacity of 30 MW and is located at Benguet, Cordillera Administrative Region
(the “Benguet Contracted Capacity”)

Interested parties must submit a Letter of Interest (“LOI”) to the Committeewhich shall state the full name, address, telephone and fax number of the interested party, name of the principal contact, and signed by an authorized representative.  The LOI must apply to the San Roque Contracted Capacity, Bakun Contracted Capacity, and Benguet Contracted Capacity.  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 18 September 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 appointment as IPPA.  

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  Ten Thousand U.S. Dollars (U.S.$10,000.00) (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 22 September  2009 to entitle an interested party to further participation in the bidding process for the appointment as IPP Administrator for the San Roque Contracted Capacity,  Bakun Contracted Capacity, and Benguet Contracted Capacity.

The Bidding Package, which includes the Bidding Procedures, shall be issued during office hours (9:00 a.m. to 5:00 p.m.) from 14 September 2009 to 22 September 2009  (the “Deadline”) at the PSALM Office.  Only interested parties or consortium (as described below) that have been issued the Bidding Package by the Deadline will be allowed to participate further in the bidding process for the appointment as IPP Administrator for the San Roque Contracted Capacity, Bakun Contracted Capacity, and Benguet Contracted Capacity.

An interested party that submits the LOI must be the party that will participate in the bidding process, submits a bid, and enters 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 bidding process, except through a consortium in accordance with the terms and conditions of the Bidding Procedures, among the requirements of which 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:

                                               
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 Five Million U.S. Dollars (U.S.$ 5,000,000.00) 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 guaranty prompt, faithful and complete performance of its obligations under the transaction.

A Bidder must submit a Bid for each of the San Roque Contracted Capacity, Bakun Contracted Capacity, and Benguet Contracted Capacity.  The said bids are separate and distinct from each other, hence, one bid each must be submitted for the San Roque Contracted Capacity, Bakun Contracted Capacity, and Benguet Contracted Capacity.  There shall be separate awards for the San Roque Contracted Capacity, Bakun Contracted Capacity, and Benguet Contracted Capacity.  A Bidder can be declared the Winning Bidder for all or any one of the San Roque Contracted Capacity, Bakun Contracted Capacity, and Benguet Contracted Capacity.  Should a Bidder submit (a) a Bid for any one  or any two of the San Roque Contracted Capacity,  Bakun Contracted Capacity, or  Benguet Contracted Capacity or (b) a joint bid for the San Roque Contracted Capacity, Bakun Contracted Capacity, and Benguet Contracted Capacity its Bid shall be disqualified.

Notwithstanding the immediately preceding paragraph, the Committee reserves the right to (i) group any two or all three of the above contracted capacities, or (ii) exclude any of the above contracted capacities from the bidding.

The details of the appointment as IPP Administrator for the San Roque Contracted Capacity, Bakun Contracted Capacity, and Benguet Contracted Capacity 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. Pablo B. Anido at the PSALM Office or at telefax number (632) 927-8170 or e-mail address pbanido@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