10 firms show up in pre-bid conference for STPP auction

by Lenie Lectura – December 1, 2015

from Business Mirror

Ten firms participated in the pre-bid conference for the sale of the decommissioned 850-megawatt (MW) Sucat Thermal Power Plant (STPP), the Power Sector Assets and Liabilities Management (PSALM) Corp. said on Tuesday.

The pre-bid conference was held on November 27. The state firm did not reveal the identities of the interested firms.

“PSALM is pleased with the interest shown by investors in this privatization activity, which is among the highly participated disposal initiatives of the corporation. It has attracted 12 prospective bidders, two of which are foreign companies. We are appreciative of the continued enthusiasm of the private sector for the government’s privatization program,” said lawyer Cecilio B. Gellada Jr., PSALM acting vice president and general counsel, in a news statement.

There were 12 firms that earlier submitted letters of interest but only 10 showed up during the pre-bid conference.

PSALM is bidding out that the structures, plant equipment, auxiliaries and accessories of the decommissioned plant on an “as is, where is” basis. The bidding is set on February 17, 2016. Gellada assured the participants that the bidding processes would be efficient, fair and transparent.

Located in Sucat, Muntinlupa City, the STPP is an oil-fired power plant that was previously owned by the Manila Electric Co., and was later acquired by the National Power Corp. (Napocor) in November 1978. It 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.

Formerly known as the Gardner Snyder Thermal Plant, the Sucat facility officially commenced commercial operations on August 1, 1968, after the completion of Unit 1. Units 2 to 4 started operating in 1970, 1971 and 1972, respectively. In January 2000 Units 1 and 4 were decommissioned and placed under preservation. Units 2 and 3 were shut down in January 2002.

PSALM expects to optimize the proceeds to be generated from the STPP transaction, and to use the revenue to contribute to liquidating the financial obligations it assumed from the Napocor. PSALM earlier auctioned the disposal of the Sucat power facility but later terminated the asset purchase agreement due to breach of the standby letter of credit issued by Genetron International Marketing (GIM), which submitted the highest bid of P602 million as against two others: Sta. Clara International Corp.’s P561 million and VPD Trading’s P482 million.