By Jordeene B. Lagare – May 10, 2020
from The Manila Times
The Power Sector Assets and Liabilities Management Corp. (Psalm) again adjusted the bidding schedule of the 650-megawatt (MW) Malaya Thermal Power Plant (MTPP) and its underlying land in line with the extension of the enhanced community quarantine in Metro Manila and other provinces.
In its latest supplemental bid bulletin, the state-run corporation said the new deadline for the filing of requests to bid as a consortium was on May 22, while the final submission of documentary deliverables was rescheduled to May 29.
The deadline for submitting bids is still at 12 noon of June 30.
Psalm shall disclose the minimum bid price to qualified bidders immediately after securing the approval of its board.
Psalm said last month it was awaiting the Commission on Audit’s feedback on its request to allow a discounting mechanism that would lower the minimum bid price.
“Psalm is continuously monitoring the Covid-19 (coronavirus disease 2019) [pandemic] and will issue appropriate supplemental bid bulletins to modify [the] dates of the bidding process, should circumstances warrant,” it said then.
Psalm has been attempting to sell the thermal plant and its underlying land for some time.
The previous bidding round fell through, as none of the interested entities met its minimum bid price. Only DM Wenceslao and Associates Inc. submitted a sealed bid last year.
Psalm then proceeded with the negotiated sale with DM Wenceslao, but the proposal was also below the minimum price. This prompted the state-led firm to declare the negotiated sale process a failure.
The Malaya plant continues to operate and being dispatched as a must-run unit (MRU) by the National Grid Corp. of the Philippines.
Once privatized, the power facility would no longer be required to run as an MRU, as ordered by the Department of Energy.
South Korean firm Soosan ENS Co. Ltd. bagged the one-year service contract to run and maintain the plant in January 2019 following its P205.7-million offer.
Under Republic Act 9136, or the “Electric Power Industry Reform Act of 2001,” Psalm is required to sell the remaining assets and settle the financial obligations of the National Power Corp.
It has been selling land and power assets to significantly reduce financial obligations until its corporate life ends in 2026.