PSALM expects more bidders to join Malaya plant sale

MANILA, Philippines — AC Energy Inc., Panasia Energy Inc. and Denki Power have expressed interest to bid for the 650-megawatt (MW) Malaya Thermal Power Plant (MTPP) in Rizal, according to the Power Sector Assets and Liabilities Management Corp.

The three firms attended the pre-bid conference called by PSALM as part of the third round of public bidding for the MTPP and its underlying land in Pililla, Rizal.

In a text message, PSALM president and chief executive officer Irene Besido-Garcia said she is confident the state-run firm would be able to attract more prospective bidders other than the three companies.

“It’s still a long process and the deadline to submit letters of intent to participate is on March 12. There is still time for more bidders to join. We are working to lower the minimum bid price and we hope to get COA’s (Commission on Audit) directive on that soon,” Besido-Garcia said.

PSALM has set the last day for the submission of documentary deliverables on March 12.  Bids will be opened on April 15.

It said only parties who submitted letters of interest and who have been issued a bidding package would be allowed to participate in the privatization of MTPP.

MTPP is currently operational and being dispatched as a must run unit by the National Grid Corp. of the Philippines.

However, once privatized, MTPP is no longer required to run as an MRU, the Department of Energy said.

Last year, there were two rounds of public bidding and both were unsuccessful.

PSALM, nevertheless, is being determined to privatize the asset which is being sold on an “as-is-where-is” basis by taking the necessary steps to adjust the minimum bid price (MBP).

It has also conducted valuation studies on MTPP and its underlying land in determining the reserve bid price.