PUBLIC NOTICES

Invitation to Bid for Manila Thermal Power Plant

The Power Sector Assets and Liabilities Management Corporation ("PSALM") Privatization, Bids and Award Committee ("The Committee") invites interested parties to participate in the second round of bidding for the sale of the following:

Plant Equipment, Components, Auxiliaries and Accessories of the Manila Thermal Power Plant (MTPP) located at Isla de Provisor, Paco, Manila

(the "Asset"). The Asset is being offered on a "as is where is" basis.

Interested parties are required to submit a Letter of Interest ("LOI") to PSALM which 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. All LOIs must be received by PSALM at the PSALM Office, 2nd Flr. SGV II Building, Ayala Avenue, Makati City, not later than 5:00 p.m. on December 6, 2006, (the "LOI Submission Deadline"). Only interested parties that submit an LOI by the LOI Submission Deadline shall be allowed to participate further in the sale 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, in the forms provided by PSALM , and pay a non-refundable fee in the amount of Five Hundred U.S. Dollars (U.S.$ 500.00) (the "Participation Fee"). The Participation Fee shall either be 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 PSALM on or before 5:00 p.m. on December 7, 2006 to entitle an interested party further participation in the sale 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 December 4 until December 8, 2006 (the "Deadline") at the PSALM Office. In accordance with the bidding procedures, only interested parties who have been issued the Bidding Package by the Deadline or a consortium which includes an interested party will be allowed to participate further in the sale of the Asset.

The schedule of the bidding activities shall be as follows:

Due Diligence : December 4 to February 2, 2007
Pre-Bid Conference : January 8, 2007, 2:00 p.m. at the PSALM Office
Bid Submission Deadline : to be announced to interested bidders at a
later date by PSALM

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.

Interested Parties will be required to post a bid security equivalent to ten percent (10%) of its total bid price in the form of an irrevocable letter of credit, confirmed by a local bank and 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 two-envelope bidding system will be adopted. Other details of the sale 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 Award Committee, PSALM Corporation, 2nd Floor, SGVII Building, Ayala Avenue, Makati City, Philippines. Inquiries and clarifications shall be addressed to Mr. Froilan A. Tampinco at the PSALM Office or at telephone number (632) 893-8202, fax number (632) 840-3896 or e-mail address fatampinco@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 sale 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 sale 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.

(Sgd.) RAPHAEL P. M. LOTILLA
PSALM Privatization, Bids and Award Committee
(November 27, 28, and 29, 2006)