Cebu power plant attracts 3 potential bidders

MANILA, Philippines - Three investor groups have expressed interest in bidding for the government’s 153.1-megawatt Naga power plant in Cebu, the Power Sector Assets and Liabilities Management Corp. (PSALM) yesterday said.

PSALM, the government corporation tasked to manage and handle state-owned power assets, said the second round of bidding for the sale of the Naga power plant has attracted SPC Power Corporation, Therma Power Visayas Inc. and RD Corp., all of which attended yesterday’s pre-bid conference for the sale of the facility.

“We thank all the interested parties for responding to our call for a new round of bidding for this particular asset package. 

With your help, we hope to successfully privatize the Naga plant this year,” PSALM president and chief executive officer Emmanuel Ledesma Jr. said.

The actual bidding is set on Oct. 15, with the deadline for the submission of bids set at exactly 12 noon.

All three groups have completed the initial requirements of the bid including the submission of a letter of interest, the payment of a non-refundable participation fee of P120,000 and the execution and submission of a confidentiality agreement and undertaking with PSALM.

Located in Colon, Naga City, Cebu, the power plant consists of two thermal power plants and one diesel-fired power plant that use a combination of coal, bunker oil and diesel as fuel.

These plants are the 52.5-MW Cebu 1 and 56.8-MW Cebu 2 coal-fired thermal power plants, and the 43.8-MW Cebu diesel power plant 1 composed of six 7.3-MW bunker oil power units.

As of December 2011, PSALM’s privatization proceeds from the sale of generating assets, decommissioned plants, transmission assets and appointment of independent power producer administrators have reached $10.210 billion.