11 local, int’l groups to bid for Mirant assets

Four of the biggest names in local business plus more than half a dozen international conglomerates presented Thursday their respective technical and financial qualifications aiming for the right to bid for and acquire the assets of Mirant Phils. Corp.

The 11 include local bigwigs such as financial tycoon George Ty, the Ayala and Aboitiz clans, and Philippine Long Distance Telephone Co. chairman Manuel Pangilinan. The list also includes global players such as the AIG group, One Energy (a 50-50 joint venture between Hong Kong’s CLP Holdings Ltd. and Japan’s Mitsubishi Corp.), Mitsubishi Corp., China Light and Power, Korea Electric Power, Tokyo Electric and Kyu-shu Electric.

They have their sights set on roughly $3 billion worth of power plants and other assets owned by Mirant Phils.

Mirant Philippines owns the 1,218-MW Sual coal plant and the 735-MW Pagbilao plant. It also owns a 25-percent stake in the 1,200-MW Ilijan plant. All these power generating facilities have live contracts to supply electricity to the Napocor.

These assets have a combined value of anywhere from $2.8 billion to $3 billion. In 2005, Mirant Philippines ranked sixth among the most profitable firms in the country with a net income of P10.8 billion. Its sister firm, Mirant Sual Corp., landed eighth with P7.7 billion in net profits.

The 11 prospective bidders were asked to submit documents to prove their technical and financial capabilities in meeting which was attended by senior officials of Mirant Philippines together with representatives from the Departments of Energy, Trade and Finance.

The prospective bidders were also asked to present their expansion plans to meet additional power demand in the coming years.

Energy officials said the meeting also discussed the state’s energy development priorities with allbidders and for each of the bidders "to outline their technical and financial capability, their long-term interest in the Philippines and their commitment to further develop the power generating capacity of the Mirant assets should they be successful in their bid."