2nd bidding set for Malaya thermal plant

MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has declared the second round of bidding for the 650-megawatt (MW) Malaya Thermal Power Plant (TPP) in Rizal another failure.

No bidders met the minimum bid price for the power plant and its underlying land in Pililia, Rizal despite having four qualified bidders, PSALM said.

The bidders were Panasia Energy Inc., AC Energy Philippines Inc., Fort Pilar Enegy Inc. and D.M. Wenceslao and Associates Inc. 

Prior to the deadline for submission of the financial bid, PSALM said Fort Pilar Energy, Panasia Energy, and AC Energy Philippines submitted letters saying they could not meet the minimum bid price of P4.48 billion.

Only D.M. Wenceslao submitted a sealed bid, which is why PSALM declared the second round of bidding a failure. 

Pursuant to the bidding rules, PSALM then proceeded to go through the process of negotiated sale with D.M. Wenceslao and Associates Inc.

However, D.M. Wenceslao’s bid was also below the minimum price, so PSALM was constrained to also declare a failure of the negotiated sale process.

“PSALM will report to its board of directors the outcome of (the) bidding so that it can take the necessary steps to lower the MBP. The next round of bidding for the Malaya plant will commence at the soonest possible time,” the state-run firm said.

The Malaya plant is operational and used as a must run unit (MRU). Per the Department of Energy’s (DOE) direction, once privatized on an “as is where is basis,” Malaya is no longer required to run as an MRU.

Last September, PSALM declared a failure of bidding for the sale of the Malaya TPP as only one bidder submitted an offer.               

Out of the four qualified bidders, only AC Energy Inc. submitted a bid for the government asset. The other qualified bidders were FGEN Reliable Energy Holdings Inc., D.M. Wenceslao & Associates Inc., and DMCI Power Corp.

Located in Pililia, Rizal, Malaya consists of a 300-MW unit with a once-through type boiler and a 350-MW unit fitted with a conventional boiler.

It was last rehabilitated in 1995 by Korea Electric Power Corp. under a 15-year rehabilitate-operate-manage-maintain agreement.