Thursday, 18 March 2010

PSALM starts bidding process for BacMan geothermal power plant

Paul Anthony A. Isla
Business Mirror
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=23136:psalm-starts-bidding-process-for-bacman-geothermal-power-plant&catid=33:economy&Itemid=60

GOVERNMENT-RUN Power Sector Assets and Liabilities Management Corp. (PSALM) has started the bid process for the Bacon-Manito (BacMan) geothermal power plants.

In its invitation to bid, PSALM said it will bid the BacMan geothermal power plants consisting of the 100-megawatt (MW) BacMan I Geothermal Power Plant in Manito, Albay, and the 40-MW BacMan II Geothermal Power Plants (Cawayan and Botong) in Sorsogon City, Sorsogon.

PSALM said the asset is being disposed of on an “as is, where is” basis.

PSALM said due diligence for the power plants started on March 17 up to May 5.

PSALM has set the prebid conference on April 6 and the submission of bid documents on May 5 at the PSALM office.

PSALM said it will require interested parties to submit a letter of interest stating the full name, address, telephone and fax numbers of the interested party, name of the principal contact and signed by an authorized representative.

As a prerequisite to the receipt of the bidding package, PSALM said the interested parties will execute a confidentiality agreement and an undertaking pursuant to Section 78 of Republic Act 9136, both in the forms provided by PSALM, and pay a nonrefundable fee in the amount of $2,000.

In December, PSALM said it was looking at bidding out the 246-MW Angat hydropower plant in Bulacan and 150-MW Bacon-Manito geothermal power complex within the first half of 2010.

PSALM earlier said it is on track with respect to their privatization plans. “We’re hoping to sell more assets in the first quarter of 2010,” said Conrad Tolentino, PSALM vice president for asset management and electricity trading.

Tolentino said PSALM also plans to bid out the contracted capacities of 1,200-MW Ilijan power plant and the unified Leyte geothermal complex.

Considering that PSALM’s privatization efforts continue to draw strong interest from foreign and local investors, Tolentino said PSALM might issue the invitation to bid for the Angat hydropower plant in the third week of January next year.

“We target to achieve the privatization of 70 percent of the independent power producer contracts of Napocor [National Power Corp.] in the first half of next year,” said Tolentino.

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