Gas-fired power facility planned at STPP

by Myrna Velasco – November 20, 2015

from Manila Bulletin

The buyer of the mothballed 850-megawatt Sucat thermal power plant (STPP) will not only acquire the asset on a scrap mode, but it will also be mandated to do clean-up of the site and prepare it for the construction of a new gas-fired power facility.

In the invitation to bid sent out by Power Sector Assets and Liabilities Management Corporation (PSALM), it specifically prescribed that the facility’s site shall be made ready for a greenfield gas plant by 2018.

PSALM stressed that such timeframe has been harmonized with the proposed implementation of the Batangas-Manila (BatMan) high pressure gas pipeline project that is underpinned by State policy.

The Department of Energy (DOE) has already stated that a new gas-fired plant at the Sucat site will serve as anchor load to the blueprinted gas pipeline project.

“The disposal of the STPP is in support of the DOE’s natural gas master plan,” PSALM president Lourdes S. Alzona said, setting specific reference to the BatMan pipeline.

She added “the disposal and site cleanup is synchronized with the Master Plan schedule which indicates that the STPP land should be available by mid-2018 for the construction/operation of a combined cycle gas turbine power plant.”

PSALM has scheduled the auction for the Sucat thermal power facility on February 15 next year. For interested takers, the deadline on submission of letters of interest (LOI) is today, while pre-bid conference is slated tomorrow.

Alzona said “the proceeds from this disposal activity will be used for the liquidation of financial obligations.” The facility will be sold on “as is, where is” basis.

The plant has four generating units that had been decommissioned in years 2000 and 2002 with pressure on government then to pare its use of oil-fired generating facilities.

The last attempt on Sucat plant’s privatization ended in a messy outcome because of fraudulent document submitted by the declared winning bidder then.