The Power Sector Assets and Liabilities Management Corporation (PSALM) today (28 August 2009) successfully conducted the second round of bidding for the appointment of independent power producer administrators (IPPAs) to manage the contracted capacities of the National Power Corporation in the coal-fired Sual and Pagbilao power plants.
San Miguel Energy Corporation (SMEC) and Therma Luzon Inc. were declared the two highest bidders in the rebid of the selection of IPPAs, which has been described as the first of its kind in Asia and, probably, the world.
SMEC, the energy investment arm of food and beverage conglomerate San Miguel Corporation, made it two in a row as it offered USD1.072 billion (USD1,072,000,000.00) for the management and control of National Power’s 1,000-megawatt (MW) contracted capacity of the Sual coal-fired power plant. Last Wednesday (26 August 2009), SMEC successfully concluded negotiations with PSALM for the sale of the 620-MW Limay Combined-Cycle Power Plant as the government accepted its USD13.5-million (USD13,502,000.00) offer for the Bataan-based power asset.
Therma Luzon, an affiliate of the Aboitiz group, was declared the highest bidder for the 700-MW contracted capacity of the Pagbilao coal-fired power plant with an offer of USD691 million (USD691,009,003.00).
Both bids exceeded the reserve price set by the PSALM Board.
As soon as it has verified the accuracy, authenticity, and completeness of the bid documents that the two companies have submitted, PSALM will issue a Notice of Award to SMEC and Therma, formally declaring them as the winning IPP administrators for the contracted capacities of the Sual and Pagbilao power facilities.
Both SMEC and Therma Luzon participated in the first bidding for the Sual and Pagbilao IPPAs held last 26 June 2009. While the technical bids of the two companies met the government’s requirements for both capacities, their financial offers came up short of the floor price.
With the successful appointment of the Sual and Pagbilao IPPAs, PSALM will enter Phase II of its IPPA selection process, which will involve the IPP contracts of the hydropower plants.
