4 firms keen on joining 2nd-round bidding for Malaya Thermal Plant

THE Power Sector Assets and Liabilities Management Corp. (PSALM) has identified four firms interested to participate in the second round of bidding for the privatization of the 650-megawatt Malaya Thermal Power Plant and its underlying land. MTPP is located in Pililla, Rizal.

The four are Panasia Energy Inc., Phinma Energy Corp, Hill Trench Power Inc. and Therma Central Visayas Inc.  Their representatives attended the pre-bid conference last week.  

“The pre-bid conference enabled interested bidders to ask questions and request for clarification relative to the bidding requirements. This is integral to ensuring that the bidders can eventually submit bids and documents that are responsive to technical requirements of PSALM,” said PSALM President and CEO Irene Besido-Garcia. 

The MTPP is currently operational and being dispatched as a must-run unit by the National Grid Corp. of the Philippines (NGCP). However, per the Department of Energy’s (DOE) direction, once privatized, MTPP is no longer required to run as an MRU.

The last day for the Submission of Documentary Deliverables is on November 7, 2019, at 5 p.m. PSALM will then check the completeness of the submitted documents and announce the prequalified bidders. 

Prior to the bid submission deadline, the PSALM Board, upon recommendation of the PSALM  Bids and Awards Committee (PBAC), will meet to determine the Reserve Price for the plant and its underlying land. Qualified bidders will then be informed of the Reserve Price.  The Bid Submission Deadline is set at noon on  November 22, followed by the opening and evaluation of bids on the same day. 

In the event of a failure of bidding because there is only one bid received, the PBAC will declare a failure of the second round of bidding. Negotiation with the lone bidder will immediately commence in accordance with Schedule 8-Negotiation Procedure of the Bidding Procedures. 

Last September 18, PSALM declared the auction a failure because only one bidder participated. Under PSALM’s Bidding Procedures, there shall be a failure of bidding if only one bid is received.

At the start of the bidding process in 2018, there were 11 companies that submitted to PSALM their letters of intent to participate in the bidding and purchased the bidding documents. 

After the prequalification process, there were four bidders declared as qualified to bid, namely: AC Energy Inc., FGEN Reliable Energy Holdings Inc., DM Wenceslao & Associates Inc., and DMCI Power Corp. 

Only AC Energy formally submitted a bid.

In a letter, DM Wenceslao & Associates Inc. informed PSALM of its decision to withdraw from the bidding, “due to current market conditions and uncertainty of supply of fuel.”

FGEN Reliable Energy Holdings Inc. and DMCI Power Corp. did not indicate why they did not submit a bid.

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