PSALM starts rebidding process for Masinloc

The Power Sector Assets and Liabilities Management Corp. (PSALM) started yesterday the rebidding process for the 600-megawatt Masinloc coal-fired power plant in Zambales.

"We are pleased to announce that PSALM has come out with the public invitation for Masinloc today (March 14) as we finalize preparations for the second round of bidding," Froilan Tampinco, PSALM vice president for asset management and electricity trading, said. 

PSALM is also working with the National Power Corp. on the attachment of a power supply allocation for Masinloc to attract more investors to participate in the power plant’s upcoming bidding exercise.

He said PSALM is also set to review the technical and financial pre-qualification criteria in the power plant’s sale schedule to ensure that the government’s interest in the auction is adequately protected, Tampinco disclosed.

"We remain optimistic that with these developments and with the Philippines’s continued fiscal improvement, we will be able to hold a successful resale of Masinloc," he said.

Tampinco is optimistic that the rebidding process of Masinloc would be easier than previous procedures.

"Also, having already obtained the specific consents of National Power’s major creditors for the Masinloc plant – the Asian Development Bank, the Japan Bank for International Cooperation and the World Bank – we anticipate a more expeditious sale process," he added.

The sale of Masinloc to YNN Pacific Consortium in 2006 did not materialize because of the consortium’s failure to deliver the $227-million upfront payment on the deadline set by PSALM.

This prompted the government power privatization firm to forfeit the $14-million performance bond posted by YNN.