Bidding for Mt Apo IPPA attracts 9 groups – PSALM

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM) has attracted nine investor groups for the selection and appointment of the independent power producer administrator (IPPA) for the output of the Mindanao I and II (Mt. Apo 1 and 2) geothermal power plants.

PSALM president and chief executive officer Emmanuel Ledesma Jr. made the announcement after the lapse of the deadlines for the initial requirements such as the submission of a letter of interest on May 30, 2014, and payment of the P120,000 non-refundable participation fee and the execution of a confidentiality agreement and undertaking with PSALM on June 6, 2014.

Of the ten investor groups which submitted letters of interest, nine have complied with the initial requirements, according to PSALM.

These are EDC Mindanao Geothermal Inc., FDC Misamis Power Corp.,  GDF SUEZ Energy Philippines Inc., Good Friends Hydro Resources Corporation, SMC Global Power Holdings Corp., SPC Power Corp., Therma Southern Mindanao Inc., Trans-Asia Oil and Energy Development Corp. and Vivant Geo Power Corporation.

Ledesma reiterated that the deadline for the submission of bids is on Sept. 24, 2014, with the opening and evaluation of bids commencing thereafter.  PSALM will hold the pre-bid conference for the Mt. Apo 1 and 2 IPPA on June 26, 2014 at the PSALM office in Ayala Avenue, Makati City. 

The bidding exercise is PSALM’s first IPPA auction in the Mindanao region. 

The Mt. Apo IPPA will be tasked to manage the output of the power plants, which may be traded in the spot market, the trading floor for electricity.

The Mt. Apo IPPA will manage government’s contracted energies in the Mt. Apo 1 and 2 plants which are 390 gigawatt-hour (gwh) and 398 gwh per year, respectively, according to PSALM.

Owned and operated by EDC, the Lopez-owned geothermal company, Mt. Apo 1 and 2 geothermal power plants are located in Kidapawan City, North Cotabato with a rated capacity of 54.24 MW each.