MANILA, Philippines - The bidding to supply electricity to the island of Siquijor, one of the missionary areas of National Power Corp.’s Small Power Utilities Group (Napocor-SPUG), has attracted 11 firms.
The interested bidders include Aggreko International Power Projects, Altergy Power Solutions Inc., Asea One Power Corp., Bantayan Island Power Corp., Global Business Power Corp., Structured Financial Group Inc., Sunwest Water and Electric Co. Inc., The PowerSource Group LLC, Trans-Asia Oil and Energy Development Corp., TruGreen Energy and Vivant Corp.
The International Finance Corp., the advisor for the privatization of the SPUG, and (Napocor) will jointly bid out the six-megawatt power supply requirement of Siquijor.
It would be noted that the competitive selection process for Napocor-SPUG’s off-grid areas is part of the major reforms in the power sector. This would allow more opportunities for private investors to build, own and operate generation facilities to supply the entire province.
Based on the IFC’s preliminary information memorandum, the bidding for the Siquijor power contract is expected by end-May while the award of the contract is expected before the end of June.
IFC, the World Bank’s private sector investment arm, said the bidding for the Siquijor requirement will also benefit the National Government and the Province of Siquijor Electric Cooperative Inc. (PROSIELCO).
Among the other benefits are the reduction of Napocor-SPUG’s deficit and impact on the national budget, re-deployment of expected decrease in subsidy requirements to un-energized areas, 24/7 supply of electricity, improved quality and reliability of power supply, and secure future power supply demand.
Napocor, the Energy Department and the Power Sector Assets and Liabilities Management Corp. retained IFC as transaction advisor for the program in 2004.
The Department of Energy (DOE) had issued a circular which allows new power providers to gradually replace the operations of the Napocor-SPUG and take over the right to supply electricity in SPUG areas by entering into power supply agreements with electric cooperatives.