Napocor defers awarding of coal supply contracts due to low bids

The National Power Corp. (Napocor) is still in various stages of negotiation with several companies for the supply of fuel to three to its coal-fired power plants.

For its 1,200-megawatt (MW) Sual power plant, Napocor declared a failed bid as only one supplier qualified and submitted the necessary documents. Shenlua Coal Trading of the People’s Republic of China was the only bidder for the supply of 455,000 metric tons of coal worth an estimated $900 million to the Sual power plant.

The contract for the supply of coal to the 600-MW Masinloc plant in Zambales is still under negotiation as the three bidders that were able to qualify all submitted bids that were over the "imaginary" benchmark.

The three – All Australian coal suppliers with local representatives – were: Coal and Allied, $40.7157 per metric ton C&F; Drayton, $42.0909 per metric ton; and Cumnock, $39.50.

All three offers were way above the benchmark of $32 per metric ton which Napocor set based on the winning bid of Shenlua Coal, supplier for the first batch of coal imports also for Masinloc.

For the 700-MW Pagbilao plant in Quezon, Napocor received two bids from Indonesian firms PT Gunung Bayan/PNOC-CC and PT Kitadin/Glencore-Caridell.

The group of PT Gunung Bayan submitted a bid of $31 per metric ton while the PT Kitadin group offered $27.50. Napocor officials said they are still discussing the two bids.

Also under negotiation is the one-year coal supply for the 600-MW Calaca I and II power plant in Batangas, which drew bids from Australian and Indonesian coal suppliers.

Both bids overshot the preferred price of $30 per metric ton including freight.

Napocor president Federico E. Puno earlier said they are also considering local coal supplies since Unit II can operate on 100 percent Semirara coal while Unit I can either utilize a blend of imported and Semirara coal.

Puno had openly favored locally-produced coal as it would result in foreign exchange savings for the country.