MANILA, Philippines - State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has formally awarded the decommissioned 850-megawatt (MW) Sucat thermal power plant (STPP) in Muntinlupa City to the highest bidder.
A notice of award (NOA) was already issued to Riverbend Consolidated Mining Corp., PSALM OIC Lourdes Alzona said.
Once the company receives the NOA, Rivebend will have to post a performance bond to complete the transaction, Alzona said.
Riverbend, a mining firm, bested two other offers with its P305.2 million bid for the Sucat plant.
The two other companies that joined the bidding were VPD Trading and G.G. Uy Bonapor Metal Contractor Company with financial offers of P201.6 million and P168 million, respectively.
As the winning bidder, Riverbend has the obligation to dismantle, clean-up and remediate the site which means that the buyer shall return the present site to ground zero (road level) free and clear of wastes, toxic substances, debris and structures.
“The successful sale of this asset advances the interest of the government as the proceeds will be part of the additional funding source for the liquidation of the National Power Corp.’s debts assumed by PSALM,” Alzona said earlier.
The Sucat plant was operational for 33 years before Units 1 and 4 were decommissioned in January 2000, and Units 2 and 3 were shut down in January 2002.
It has been put up for sale twice – one in 2014 and in 2016 – but both have been declared failed biddings.
The Sucat plant consists of Unit 1, which has a rated capacity of 150 MW; units 2 and 3, each with 200 MW; and unit 4, which is rated at 300 MW.
It was previously owned by Manila Electric Co. (Meralco) but was acquired by the National Power Corp. in November 1978.
Formerly known as the Gardner Snyder Thermal Plant, the plant officially commenced commercial operations in 1968 with the completion of Unit 1.