At least seven groups have expressed interest to bid for the 620-megawatt (MW) Limay combined-cycle power plant in Bataan.
Power Sector Assets and Liabilities Management Corp. (PSALM) vice president Froilan Tampinco said the response of the prospective bidders is a welcome development, indicating their continuing support for the privatization of state-owned power facilities.
Tampinco declined to identify the seven prospective bidders that submitted their letters of interest (LOIs). But industry sources said among those that submitted bids were: AES Corp., Alstom, Marubeni Corp. and Western Power Co., a subsidiary of Korea Electric and Power Co. (Kepco).
PSALM has issued its invitation to bid last May 21. The deadline for the submission of LOIs expired last May 30.
The due diligence period will start from May 21 until July 28, 2008, the pre-bid conference for qualified participants is scheduled tomorrow, June 4.
PSALM has set July 30, 2008 as the bid date for the Central Luzon-based power asset.
A combined-cycle power plant such as the Limay plant generates electricity in two ways: a combination of bunker and diesel fuel to power its gas turbines.
To improve fuel efficiency, the plant utilizes the heat of exhaust gas from the gas turbines to boil water inside the boiler which produces steam that will drive the steam turbines.
Commissioned in 1993, the Limay combined-cycle power plant comprises two 310-MW modules, Blocks A and B, which consist of three 70-MW gas turbines and a 120-MW steam turbine, respectively. The plant is designed to meet the base-load demand of the Luzon grid.
Last year, PSALM was able to raise some $1.9 billion from the sale of about 42 percent of the generating assets of the National Power Corp. (Napocor).
They include the 600-MW Masinloc coal-fired power plant in Zambales worth $900 million, the 600-MW Calaca coal-fired power plant in Batangas worth $700 million and the Ambuklao-Binga hydroelectric plants in Benguet worth $300 million.
PSALM is hoping that it could reach the 70 percent privatization target by the end of this year.