PSALM sets March 30 auction for Manila thermal power plant

The Power Sector Assets and Liabilities Management Corp. (PSALM) will bid out the 200-megawatt (MW) Manila Thermal Power Plant (MTPP) at the end of this month, a company official said. 

"We will soon furnish our bidders a polished sale contract as we are targeting to hold the final bidding by March 30. The final bid date will be communicated through a supplemental bid bulletin that will be disseminated to all the bidders," PSALM vice president for assets management and electricity trading Froilan A. Tampinco said.

He said PSALM recently had discussions with prospective bidders as it finalizes preparations for the auction of the retired facility this month.

"We have given the prospective bidders another opportunity to thresh out the remaining issues in the decommissioned facility’s auction that will be considered for inclusion in the final draft of the bid transaction documents," Tampinco said.

The PSALM team involved in the MTPP sale sought the sentiments of the five investor groups on the terms and conditions on the purchase and delivery of the assets.

It also discussed the rights and obligations of the winning bidder and the purchase price, closing date and deliverables stipulated in the plant’s asset purchase agreement.

The discussions also tackled the memorandum of agreement between the winning bidder and the Manila Electric Co. (Meralco) regarding the dismantling and clean-up of assets inside the Meralco-owned substation located inside the plant premises to ensure that no damage or loss will occur throughout the process. 

Tampinco requested the bidders to put their comments in writing as he assured them that PSALM would look into their concerns to come up with sale contract terms that are more acceptable to all parties.

Located in Ermita, Manila along the Pasig River, the plant has two identical generating units, each with a capacity of 100 MW. Both units were retired in January 2000.

"We hope that our bidders, who are mainly in the construction or steel manufacturing business, will participate in the final bidding process. The Manila Thermal plant is a promising investment because of its high scrap value, component auxiliaries and accessories," Tampinco said.