Camp John Hay mini-hydro plant up for bidding

MANILA, Philippines - John Hay Management Corp. (JHMC) is looking for firms interested in the long-term lease and development of the Camp John Hay mini-hydropower plant.

 “The JHMC is inviting interested bidders to bid for the long-term lease and development of the Camp John Hay Mini-Hydro Power Plant located at Brgy. Camp 7, Baguio City and Brgy. Camp 4, Tuba, Benguet, Philippines on an ‘as-is, where-is’ basis,” JHMC said in an invitation posted on the Bases Conversion and Development Authority (BCDA) website.

The lease will be for a period of 25 years, renewable for another 25 years upon agreement by both parties.

The minimum acceptable starting annual fixed lease for the property is set at P2 million, exclusive of  12 percent value-added tax (VAT) but subject to an annual escalation of five percent starting on the second year and every year thereafter.

The annual fixed lease will have to be paid on or before the anniversary date of the contract.

Under the contract, JHMC will have a minimum share of at least five percent of the projected gross income from the sale of electricity generated from the power plant’s operations.

Upon signing of the contract, the winning bidder will need remit to JHMC in advance its share for the first seven years of operations, exclusive of 12 percent VAT.

Succeeding payments which shall start on the eighth year of the operations should be remitted on or before each anniversary of the execution of the contract.

Interested parties may purchase the terms of reference (TOR) for the  bidding at the JHMC Office Complex in the John Hay Special Economic Zone in Baguio until April 13, for a non-refundable fee of P100,000 payable to JHMC in manager’s check.

The TOR may be also be viewed on the BCDA and JHMC’s websites at www.bcda.gov.ph and www.jhmc.com.ph, respectively.