12 firms vying for 850-MW Sucat plant

by Riza T. Olchondra – November 26th, 2015

from Philippine Daily Inquirer

A dozen companies have expressed interest in the tender for the mothballed Sucat coal power plant in Muntinlupa City—a development that could get Power Sector Assets and Liabilities Corp.’s privatization pipeline moving despite recent setbacks.

“We have 12 LOI (letters of intent) from prospective bidders,” PSALM president and CEO Lourdes S. Alzona said.

Those who sent LOIs may send representatives to the pre-bid conference that will be held tomorrow, Nov. 27.

PSALM opened the second round of bidding for the sale of the Sucat facility on Nov. 11, 2015. At stake are the structures, plant equipment, auxiliaries and accessories of the decommissioned 850-megawatt Sucat Thermal Power Plant (STPP).

In the “Invitation to Bid” published in several newspapers, PSALM said the STPP would be sold on an “as is, where is” basis.

The bidding will be held at the PSALM offices in Makati City on Feb. 15, 2016. The bid submission deadline is set for 12 noon.

Only parties that have submitted an LoI will be allowed to participate in the bidding.

“The disposal of the STPP is in support of the Department of Energy (DoE)’s Natural Gas Master Plan (Batman Pipeline). The disposal and site cleanup is synchronized with master plan schedule that indicates that the STPP land should be available by mid 2018 for the construction/operation of a combined-cycle gas turbine power plant. The proceeds from this will be used for the liquidation of financial obligations,” Alzona said.

The STPP is an oil-fired power plant previously owned by Manila Electric Co. and acquired by National Power Corp. in November 1978. It consists of Unit 1, which has a rated capacity of 150MW; Units 2 and 3, each with 200MW, and Unit 4, with 300MW.

Units 1 and 4 were decommissioned in January 2000, while Units 2 and 3 were shut down in January 2002.

So far this year, PSALM has not had any asset privatization activity done besides the turnover of three power barges to listed Trans-Asia Oil & Energy Development Corp. (the power arm of the Phinma Group) for P420 million.