Napocor sets bid for P16-billion fuel supply deals

MANILA, Philippines - The National Power Corp. (Napocor) is expected to bid out P16 billion worth of fuel supply contracts this month.

The requirement will be used by its independent power producers and small power utilities group (SPUG).

Based on Napocor data, the bidding which will be held on April 28 this year will cover fuel requirements for the period May to December 2009.

Napocor is set to hold its pre-bid conference on the said requirement on April 14.

Early this year, Napocor has awarded P1.5 billion worth of fuel supply contract to oil firms Chevron Philippines, Petron Corp. and Filpride Resources Inc.

Based on Napocor’s existing bidding rules, the process is restricted to local enterprises or groups that are at least 60 percent Filipino owned and to citizens of a country the laws of which grant similar rights to Filipino citizens, pursuant to Republic Act 5183.

Luzon accounts for close to 70 percent of Napocor’s total market, with energy sales of almost 25,000 gigawatt-hours. In terms of customers, 138 of Napocor’s 263 customers are located in the said grid.

Earlier, Energy Secretary Angelo Reyes directed for the review of all the contracts of the state-run power firm and if possible put in the “blacklist” all those that have unpaid accounts with the government.

Reyes, prior to this order, had also asked for the review of all the accounts of Napocor.

At the course of the review, it was found out that there are a number of companies that have unpaid accounts to Napocor which are still able to join the bidding for the power firm’s requirements.

Napocor was tasked to come up with concrete recommendations on what to do with these delinquent companies.