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 privatization of the following:

Package 1: 32 MW Power Barge 101 and 32 MW Power Barge 102
located at Bo. Obrero, Iloilo City;

Package 2: 32 MW Power Barge 103 located at Estancia, Iloilo and;

Package 3: 32 MW Power Barge 104 located at Holcim Compound, Ilang, Davao City

(the “Asset”). The Asset is being privatized on an “as is where is” basis. Interested parties must submit a Letter of Interest (“LOI”) to the Committee, which 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 14 February 2012 (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 Three Thousand U.S. Dollars (U.S.$ 3,000.00) (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 15 February 2012, 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 (8:00 a.m. to 5:00 p.m.) from 13 February to 22 February 2012 (the “Deadline”) at the PSALM Office. Only interested parties or consortia (as described below) that 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 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.

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 shall be adopted. Interested Parties will be required to post a bid security equivalent to the amount of Eleven Million Pesos (PHP 11,000,000.00) for Package 1, Five Million Five Hundred Thousand Pesos (PHP 5,500,000.00) for Package 2 and Five Million Five Hundred Thousand Pesos (PHP 5,500,000.00) for Package 3 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. 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 the Committee Chairman, delivered to the aforementioned address, or through telefax number (632) 892-6029 or e-mail address cstolentino@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. The Committee 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, the Committee 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 shall be notified subsequently of such modifications, supplements, or changes.

EMMANUEL R. LEDESMA, JR.
Chairman
PSALM Privatization, Bids and Awards Committee
30, 31 January 2012, 1 February 2012