PSALM sets pre-bidding for Manila thermal power plant

The Power Sector Assets and Liabilities Management Corp. (PSALM) has set the pre-bidding schedule for the Manila Thermal Power Plant (MTPP) on Jan. 8 next year.

PSALM said its Privatization, Bids and Award Committee will start issuing bid packages on Dec. 4 to 8, although the schedule of the bidding proper has yet to be determined.

If the bidding pushes through early next year, the second round of bidding for the sale will include the MTPP’s equipment, components, auxiliaries and accessories at Isla de Provisor, Paco, Manila.

According to PSALM, the 200-megawatt (MW) MTPP asset is being offered on an "as is, where is" basis. The power plant was built in 1965 and stopped commercial operations in September 2000.

PSALM said interested parties are required to submit a Letter of Interest (LOI). All LOIs must be received at the PSALM Office at the second floor of SGV II Building in Ayala Avenue, Makati City, not later than 5 p.m. on Dec. 6.

Only interested parties that submit an LOI by the deadline shall be allowed to participate further in the sale of the asset.

As a prerequisite to the receipt of the bidding package, interested parties shall execute a confidentiality agreement and an undertaking pursuant to Section 78 of RA 9136, in the forms provided by PSALM, and pay a non-refundable fee in the amount of $500 participation fee.

PSALM will allow the interested parties to conduct their respective due diligence from Dec. 4 to Feb. 2, 2007.

Interested parties will be required to post a bid security equivalent to 10 percent of its total bid price in the form of an irrevocable letter of credit, confirmed by a local bank and acceptable to the committee.

MTPP is one of the decommissioned plants scheduled to be disposed by PSALM by early next year.

Aside from MTPP, PSALM is also set to bid out other retired power facilities such as Bataan Thermal, Cebu II, Aplaya, General Santos and Sucat Thermal.