4 firms eye BacMan geothermal plants

MANILA, Philippines - At least four prospective bidders remain keen on acquiring the 150-megawatt (MW) BacMan geothermal power plants located in Manito, Albay and Sorsogon City, Sorsogon.

The Power Sector Assets and Liabilities Management Corp. (PSALM) said representatives from these bidders expressed their keen interest to participate in BacMan bidding during the pre-bid conference conducted last April 6, 2010.

The state-run asset management firm did not disclose the identities of the four potential bidders but earlier Trans-Asia Oil, San Miguel Energy Corp., Energy Development Corp. (EDC) were among those that signified interest for BacMan.

PSALM said the bidders sought to clarify provisions of the bidding procedures in preparation for the bid submission deadline on May 5, 2010.

The investor groups had previously participated or are currently participating in PSALM’s bidding exercises.

PSALM noted that the interested parties have complied with the initial requirements, which include the submission of a Letter of Interest and the payment of a non-refundable participation fee of $2,000.

The prospective bidders also executed a confidentiality agreement with PSALM prior to the March 29, 2010 deadline.

Asset Valuation and Disposal Department manager Ricardo M. Empleo Jr., who presided over the discussion of the bidding procedures, said the comments raised in the pre-bid conference would not modify the bidding procedures unless PSALM issues a Supplemental Bid Bulletin informing them of any change.

The BacMan I geothermal plant consists of two 55-MW turbines, which were both commissioned in 1993.

BacMan II, on the other hand, consists of two 20-MW units called the Cawayan and the Botong.

The Cawayan, which is located in Barangay Basud, was commissioned in 1994, while the Botong unit, commissioned in 1998, is situated in Osiao, Sorsogon City.

Bacman would be the last geothermal power plant that would be placed in the auction block since the rest would involve the privatization of contracts to independent power producer administrators (IPPAs).

At present, Bacman power plants are being supplied by Bacman Geothermal Production Field in Sorsogon operated by EDC which is owned by the Lopez group.

The geothermal field, estimated at 25,000 hectares, covers the boundary of Legaspi City, Sorsogon City, Bacon District of Sorsogon City and the town of Manito Albay in the Bicol Region, South of Luzon.

PSALM intends to bid out the 246 MW Angat hydroelectric power plant located in Norzagaray, Bulacan on April 28.

The agency will also privatize the contracted capacity of the 1,200 MW Ilijan combined cycle power plant on April 16.