PSALM opens bidding for 3 more IPPAs
Posted on September 21st, 2009
The Power Sector Assets and Liabilities Management Corporation (PSALM) opened for bidding the independent power producer administrator (IPPA) contracts for the National Power Corp.’s three hydro-electric power plants. These are the 30-megawatt Benguet Mini-Hydro; 345-MW San Roque Multi-Purpose Hydro-electric Power Plant in Pangasinan and the 70-MW Bakun Hydroelectric Power Plant in Ilocos Sur.
PSALM announced that at least seven companies have expresses interest to bid for the IPPA contracts of the 3 power plant. Conrad Tolentino, PSALM spokesperson, declined to name the seven companies, but said that they have already submitted their letters of intent to the agency last week.
A pre-bidding conference for the three facilities will be held by PSALM on September 30, while the deadline for bid submission was set for November 11.
Unlike their previous bidding for the IPPAs of the Sual and Pagbilao coal-fired power plants, interested parties “have to bid for all and can win as many as they can†in the auction for the three plants.
According to reports, those who have expressed interest in bidding for the said IPPA contracts are Trans-Asia Oil and Energy Development Corp., and the Aboitiz Power Corp. Team Energy expressed interest in the contract for the San Roque multipurpose hydroelectric power plant as they see it as a good fit with the company’s coal power plant.
The bidding for the three power plants is the second batch of IPPA contracts offered to private sector. PSALM said it might employ a different approach and commercial structure since these build-operate-transfer projects involve other government agencies.
After the three power plants, PSALM will be entering the third phase of the IPP administration selection process. This time, it will involve the 1,200-MW contracted capacity of the Ilijan natural gas plant, which has a take-or-pay contract with its gas suppliers.
IPPs are contracted to supply power to state-run Napocor. When management of IPP contracts are turned over to the private sector, the winning bidders will manage the contracted capacities of the government in IPP power plants.
