Napocor fails to sell gas turbines

The National Power Corp. (Napocor) failed anew to sell eight land-based gas turbines worth approximately $49.5 million.

"We will announce a third and final public bidding soon," said Napocor marketing officer Richard Lazatin.

Only one bidder, the International Trade Management Inc. (ITM) of California, successfully tendered a bid last Thursday which was immediately declared a failure. General Electric Inc. and Advance Resources, which both expressed interest in making a bid, failed to meet the deadline.

The price tag for the eight gas turbines is expected to be lowered by another 10 percent based on government bidding rules. Thus Napocor would most likely open its final bidding for the turbines are $44.5 million.

The turbines were originally priced at $55 million but the amount was reduced to $49.5 million after the first public auction was declared a failure.

Up for grabs are the three Malaya gas turbines with 30-megawatt (MW) capacity each, the 30 MW Sucat gas turbine, and the four turbines in Bataan with a combined capacity of 120-MW. The Malaya and Bataan turbines were built in 1989 while the Sucat turbine followed four years after.

Since the three gas turbines are land-based the buyers will have to dismantle or uproot the plant. That is one of the reasons why the National Power Corp. (Napocor), owner of the gas turbines, had decided to lower the bid price.

The three land-based gas turbines are the last of its kind in Napocor's list of assets for disposal.

ITM purchased the two 501F gas turbines also sold by Napocor. The first was sold in January 1999 and the second in August the same year.

Both turbines had a 100-MW generating capacity although the price differed. The first was worth $25 million while the second was sold at $32.5 million.

The two gas turbines were part of a settlement undertaken between the Philippine government and Westinghouse Electric Corp. of the United States.

As part of the settlement, Westinghouse will hand over two gas turbines and some P400 million in cash to the Philippine government.