16 firms interested to bid for ULGPP, Mindanao Coal power-supply contracts

by Lenie Lectura, 15 April 2015
from BusinessMirror

THE sale of supply contracts for the output of the Unified Leyte Geothermal Power Plant (ULGPP) and the 200-megawatt (MW) Mindanao Coal power plant drew strong interest from 16 firms.

The Power Sector Assets and Liabilities Management (PSALM) Corp. is bidding out the selection and appointment of an independent power producer administrator (IPPA) for ULGPP’s bulk output and for the contracted capacity of the Steag plant in Mindanao.

For the ULGPP bulk privatization, PSALM President and CEO Emmanuel R. Ledesma Jr. said in a text message that six companies have expressed their interest to participate in the bidding process.

“However, out of the figure, only four prospective bidders paid for participation fee and executed confidentiality agreement and undertaking,” Ledesma said.

Meanwhile, there were 12 companies that expressed interest to participate in the Mindanao Coal privatization. “All 12 prospective bidders paid the participation fee and executed confidentiality agreement and undertaking,” the PSALM official added.

The identities of the 16 firms were not revealed.

ULGPP consists of the 125 MW Upper Mahiao, 232.5-MW Malitbog, 180-MW Mahanagdong and 51-MW Optimization plants.

A prebid conference, which primarily discusses PSALM’s bidding procedures, will be on May 6 for the Mindanao coal privatization. The bidding for the Mindanao Coal IPPA is on September 23.

Located in Misamis Oriental, the Mindanao Coal plant was constructed in 2006 under a 25-year Build-Operate-Transfer-power purchase agreement scheme. The cooperation period with the operator, Steag State Power Inc., officially ends in 2031.

The plant supplies about a fifth of Mindanao’s power needs. It has an installed capacity of 210 MW but the government’s contracted capacity is only 200 MW.

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