9 groups eye management of 3 hydropower plants

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM) expects nine groups to bid for contracts to manage the output of three huge hydropower plants.

PSALM, the state entity tasked to oversee the disposal of National Power Corp. (Napocor) assets, said it will hold the bidding for the independent power producer administrators (IPPAs) contracts of the San Roque, Bakun and Benguet hydroelectric power plants on Nov.11.

The state-run asset management firm did not identify any of the nine groups but it was earlier reported that among the groups eyeing these hydropower plants are Aboitiz Power Corp., TeaM Energy, Pacifica, Trans-Asia and First Gen Corp.

PSALM said the interested groups are currently conducting due diligence on the hydro IPPs.

Included in this package are contracted capacities in the 345-megawatt (MW) San Roque multipurpose hydroelectric power plant, the 70-MW Bakun hydroelectric power plant and the 30-MW Benguet mini-hydropower plant, all located in Northern Luzon.

The San Roque hydro plant is based in San Manuel, Pangasinan while the Bakun plant is located in Alilem, Ilocos Sur. The Benguet mini-hydro facilities lie in the Cordillera Administrative Region is home to the Philippines ’s summer capital, Baguio City.

PSALM will adopt the standard two-envelope bidding system it uses for its bidding exercises in this auction.

The bidders, however, will have to submit three separate bids for each of the contracted capacities to be considered as a qualified participant.

Conrad S. Tolentino, acting vice president of PSALM’s asset management and electricity trading, said the interested parties “have to bid for all and can win as many as they can” in the bidding for the three hydro facilities.

“Thus, bidders who will submit an offer for only one or any two of the contracted capacities will be disqualified, he pointed out. Likewise, a joint bid for any of the contracted capacities will not be authorized,” Tolentino said.

PSALM’s rules stipulate that a qualified bidder may be declared the winning bidder for any one or all of the contracted capacities.