PSALM seeking bidders anew for decommissioned Sucat power plant

by Lenie Lectura – November 19, 2015

from Business Mirror

The Power Sector Assets and Liabilities Management Corp. (PSALM) is again soliciting bids for the sale of the 850-megawatt (MW) decommissioned Sucat Thermal Power Plant (STPP).

In a published bid invite, the state firm formally opened the second round of bidding for the sale of the structures, plant equipment, auxiliaries and accessories of the decommissioned plant in Muntinlupa City.

PSALM stated that the STPP would be sold on an “as is, where is” basis.

It has set on November 23 the deadline for the submission of the letter of interest day before a prebid conference on the following day.

The bidding will be conducted at the PSALM office in Makati City on February 15, 2016, with the bid submission deadline set at 12 noon of the same day.

“The disposal of the STPP is in support of the Department of Energy’s Natural Gas Master Plan. The disposal and site cleanup is synchronized with 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. The proceeds from this disposal activity will be used for the liquidation of financial obligations,” PSALM President and CEO Lourdes Alzona said.

PSALM earlier auctioned 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, which submitted the highest bid of P602 million as against two others—the Sta. Clara International Corp.’s P561 million and VPD Trading’s P482 million.

There were plans raised before to restore some of the units of the decommissioned plant by way of rehabilitation.

But former Energy Secretary Carlos Jericho L. Petilla said it is no longer advisable to jump-start the power facility again. Besides, it is too costly to rehabilitate than construct a new one.

“That’s been flooded already and it may not be feasible to recommission it. However, if PSALM bids again it will be on the basis that the property will be used for power generation,” the former energy secretary said.

Petilla meant that the land where the Sucat plant is situated could still be allocated for energy use, possibly convert the area where a gas-fed electricity generating facility can be put up to serve as anchor load for a gas pipeline traversing the routes from Batangas to Manila.

The oil-fired power plant in Sucat, Muntinlupa City, was previously owned by the Manila Electric Co., and later acquired by the National Power Corp. 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.

The Sucat plant was formerly known as the Gardner Snyder Thermal Plant, and officially commenced commercial operations on August 1, 1968, with the completion of Unit 1.

Units 2 to 4 followed operations after their construction in 1970, 1971, and 1972, respectively.

In January 2000, Units 1 and 4 were decommissioned and placed under preservation. Units 2 and 3 followed later in January 2002.