MANILA, Philippines – The number of groups interested to bid for the 600-megawatt (MW) Calaca coal-fired power plant has increased to 11 from the previous nine, the state-run Power Sector Assets and Liabilities Management Corp. (PSALM) said.
PSALM said the 11 groups attended the pre-offer conference of the Batangas coal-fired thermal power plant, otherwise known as the Calaca power plant, last Thursday.
The PSALM technical working group discussed with the prospective buyers issues and concerns on the negotiation procedures for the sale of the Calaca power plant. The conference was also held to ensure the transparency, integrity, and fairness of the bidding process.
The prospective bidders, consisting of local and international entities, expressed keen interest in acquiring the Calaca facility after Emerald Energy Corp. (EEC), the winning bidder in the third round of bidding held on Oct. 16, 2007, chose to terminate its purchase of the asset in January 2009 due to alleged deterioration of the power plant.
PSALM chief of staff and spokesperson Conrad S. Tolentino said the investors’ response was a “pleasant surprise for PSALM.”
PSALM decided to conduct a negotiated sale for the Calaca plant after two failed bids and following EEC’s termination of its purchase. In a negotiated sale, PSALM will award the facility to the highest bidder who meets the government’s reserve price.
The privatization of the Calaca facility, which will be conducted in July this year, will clinch the 70 percent privatization level stipulated in the Electric Power Industry Reform Act, one of the preconditions to usher in the regime of open access and retail competition.
The Calaca power plant was first offered to prospective investors on May 18, 2005, but the bidding was canceled after two of the three qualified bidders backed out shortly before the deadline for the submission of offers.
The second round of bidding held on April 27, 2006 was also declared a failure because the price proposals submitted by the two bidders were below the reserve price.