5 groups to bid for 600-MW Masinloc power plant

Five investor groups have submitted letters of interest (LOI) to participate in the bidding for the 600-megawatt (MW) Masinloc coal-fired power plant slated on July 26, a ranking Power Sector Assets and Liabilities Management Corp. (PSALM) official said over the weekend.

PSALM vice president for asset management and electricity trading group Froilan Tampinco said the prospective bidders consist of three foreign groups and two local firms. Of the three foreign groups, two are US-based companies while one is an Asian group.

"The three foreign firms are composed of two utility companies and one investment bank," Tampinco said.

He said two of the five prospective bidders for the Zambales-based power facility are new investors.

"There are two new groups that submitted their LOIs," he said.

He said the two local bidders are both utility companies and former potential bidders.

It will be recalled that Korea Electric Co., CalEnergy and First Gen Corp. have expressed interest to bid for Masinloc.

Earlier this month, PSALM started fielding out letters of invitation to bid. Interested parties have until April 12 this year to submit their LOIs.

Prospective bidders are also given from March 29 to July 19 this year to conduct their respective due diligence activities.

Pre-bid conference is slated on May 8 at the PSALM head office in Makati City. Bidding proper will be 12 noon also at the PSALM office on July 26.

PSALM is currently working with the National Power Corp. (Napocor) to attach a power supply contract for Masinloc to entice 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.

The sale of Masinloc to the Australia-based YNN Pacific consortium in 2004 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.

Masinloc is among the big ticket items to be sold by PSALM this year.