PSALM to award Agus 6 contract by Q4

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM), the government corporation tasked to handle the government’s power assets, expects to award the contract for the uprating project of Agus 6 in the fourth quarter of the year, according to the Department of Energy (DOE).

“Indicative biding is by the third quarter while awarding is by the fourth quarter of 2014,” the DOE department said in a report.

As part of the project, PSALM has approved and confirmed the project implementation including the realignment of budget from National Power Corp. – Operations and Management Agreement – Maintenance and Other Operation Expenditures (NPC-MOA-MOOE) to PSALM, the DOE also said.

Eight investor groups have expressed interest in bidding for the uprating project of Agus 6 hydroelectric power plants.

The eight interested parties are Alstom Philippines, China International Water and Electric Corp., HydroChina ZhongNan-HEC-BSPJV, Kaltimex Energy Philippines, Inc., PHP Philippine Hydro Project Inc., Vicente Lao Construction, Zhejiang Fuchunjiang Hydropower Equipment Co. Ltd.  and Guangxi Hydroelectric Construction Bureau.

PSALM said these parties purchased bid documents and are currently conducting their respective due diligence on the project.

The project, targeted to be bid out in the third quarter of the year, involves the uprating of units 1 and 2 of the Agus 6 plant in Mindanao.

The Mindanao Power Monitoring Committee (MPMC), the committee created by the government to monitor the power situation in Mindanao, earlier endorsed a new proposal designed to uprate a major unit of Agus 6 hydroelectric power plant.

The move is part of efforts to boost the capacity of the state-owned power generating plant.

Mindanao Development Authority (MinDA) chairperson Luwalhati Antonino who heads the power monitoring body said the new proposal for the uprating of Agus 6 Unit 4 is in addition to the Agus 6 Units 1 and 2 uprating approved last year by the National Economic and Development Authority (NEDA) Board.