MANILA, Philippines - State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has started the second round of bidding for P114 million worth of coal supply.
In a public notice, PSALM said it allotted P114.125 million for “the contract (ABC) for the supply and delivery of 25,000 metric tons (MT) of coal to Naga power plant complex in Naga, Cebu.”
The coal supply, of which around 10 percent will be locally sourced, will be used to continue operations of the Naga power plant complex.
The 148-megawatt (MW) Naga complex is composed of three thermal power plants that use a combination of diesel, bunker C oil and coal as fuel.
These power plants are: the 50-MW, coal-fired Cebu Thermal Power Plant 1, the 56.8-MW Cebu Thermal Power Plant 2 and the 39-MW Cebu Diesel Power Plant 1.
“Bids received in excess of the ABC shall be automatically rejected at bid opening,” PSALM said.
Last month, PSALM said it will spend as much as P119.53 million for the supply of 25,000 MT of coal.
PSALM’s first bidding on Nov. 13 was declared a failure.
For the second round of bidding, the state-run firm will hold a pre-bid conference with interested suppliers on Nov. 23.
Bid submission and opening is scheduled on Dec. 5.
“Bidders should have completed, within five years from the date of submission and receipt of the bids, a contract similar to the project, equivalent to at least 25 percent of the ABC,” PSALM said.
PSALM, formed by the 2001 Electric Power Industry Reform Act, is the state firm in charge of privatizing government power assets as well as managing National Power Corp.’s power plants and debt. It buys the fuel requirements of the Naga power plant complex while awaiting the asset’s privatization.
Meanwhile, listed SPC Power Corp., the operator of the Naga power plant, almost tripled its consolidated profits to P1.06 billion in the nine months to September from P365.4 million a year ago.
“The increase in earnings was attained despite substantial reduction in other income due mainly to higher contributions from associates, additional fees received for operating and maintaining the 650-MW Malaya thermal power plant and the Naga power plant complex,” SPC Power said in a disclosure.
SPC Power said it also benefited from higher energy generated and sold from the Panay and Bohol diesel power plants, and cost reduction measures.
Consolidated revenues reached P1.75 billion in the nine-month period, up 52.2 percent from P1.15 billion last year.
In March, SPC bagged a six-month contract to continue operating and maintaining the Naga plant complex, with PSALM committing to pay the listed firm P148.99 million for its services.
SPC, formerly Salcon Power Corp., is a venture company led by the Salcon consortium that entered into a deal with the National Power Corp. to rehabilitate, operate, maintain and manage the Naga power plant complex starting in 1994.
Subsidiaries of the company are Bohol Light Co., Inc., SPC Island Power Corp. and SPC Electric Co., Inc. It also has a stake in Mactan Electric Co. Inc. and Kepco SPC Power Corp.