PSALM sets bidding for 2 power plants

The Power Sector Assets and Liabilities Management Corp. (PSALM) has set the bidding for two small power plants in Bicol on June 10, part of a series of auctions for the generating assets of the National Power Corp. (Napocor).

The 1.8-megawatt (MW) Barit plant in Buhi, Camarines Sur will be sold separately from the 0.4-MW Cawayan hydroelectric power plant in Sorsogon City, Sorsogon, PSALM officials said.

PSALM said it has also set May 12 as the deadline for the submission of letters of interest on these specific assets.

Meanwhile, the due diligence period will last from May 3 to June 4 while the pre-bid conference will be made on May 14, PSALM added.

Another asset, the Agusan hydroelectric plant located in Dimalag, Manolo Fortich in Bukidnon, will be auctioned off on May 27 this year.

According to PSALM, the due diligence for Agusan will be held from April 29 to May 25.

The Agusan plant is a 1.6-MW rated hydroelectric power plant approximately 36 kilometers southeast of Cagayan de Oro City in Mindanao.

Commissioned in 1957, the Agusan plant was constructed by Napocor and was the first hydroelectric project in Bukidnon province.

The plant consists of two generating units each rated at 800 kilowatts. It generates power from stored water sourced from the Agusan River.

The Agusan plant is currently connected to the lines of a local distributor, the Cagayan de Oro Electric Power & Light Co. (Cepalco) in Cagayan de Oro City.

PSALM said interested parties will be required to post a bid security equivalent to 10 percent of its total bid price in the form of irrevocable letter of credit.

For the first half of 2004, PSALM expects to raise about $28 million from the sale of at least six Napocor generating assets. This amount does not include the proceeds from the sale of the decommissioned plants.

PSALM has commissioned two asset appraisal firms to reevaluate the decommissioned plants, the Manila and Bataan thermal facilities.