Taifu Metal Exchange Corp., a Filipino company, completed negotiations with the Power Sector Assets and Liabilities Management Corporation (PSALM) last Thursday (22 January) for the sale of the 54-megawatt Cebu Diesel Power Plant (Cebu II), the second decommissioned power facility to be successfully sold by PSALM.

Taifu Metal agreed to pay the aggregate amount of USD460,000.00 for the plant equipment, components, auxiliaries and accessories of the Cebu II power plant, excluding the land, disclosed PSALM.

PSALM’s technical working group reviewed the negotiating documents submitted by Taifu Metal and found them compliant with all prescribed requirements, subject to verification of the authenticity and veracity of the submissions.

Established in September 2005, Taifu Metal acquires decommissioned industrial plants as a primary source of scrap metal that can be processed to supply its domestic and international clientele.

Under the terms of the sale, Taifu Metal will be responsible for the dismantling of the plant equipment and the environmental cleanup.

PSALM decided to conduct negotiations with Taifu Metal after two failed biddings. The first bidding failed due to lack of interest, while only one bidder complied with the submission of documentary deliverables in the second bidding.

Located in the municipality of Talavera in Toledo, Cebu, the Cebu II power asset has three generating units which were commissioned between May 1982 and April 1983. Originally designed to operate as a base-load plant, the Cebu II facility underwent preservation in December 1997.
 
PSALM sold its first decommissioned power asset in April 2008 after successfully concluding negotiations with Malaysian-based Gagasan Steel Inc. for the sale of the Manila Thermal Power Plant.