National Power Corp. (Napocor) recently awarded P800 million worth of contracts for the three-year supply of engine lubricating oil for its power facilities.
Pilipinas Shell Petroleum Corp. bagged bulk of the contracts with P556 million; Chevron Philippines Inc. secured P125.5 million worth of contracts; Petron Corp. got P112.7 million; and PTT Philippines Corp. bagged P3.6 million.
Most of the supply for lubricating oil will be allotted for Napocor’s small power utilities group (SPUG) while some will be allocated for power plants and the requirements of its contracted independent power producers (IPPs).
Early this month, Napocor also bid out about P867.3 million worth of fuel oil and diesel contracts for the requirements of its Bataan combined-cycle power facility and its contracted IPPs Bauang and Subic II oil-based plants for deliveries from May 11 to June 30 this year.
Pilipinas Shell, Petron, PTT Philippines, Filpride Resources and Chevron joined the bidding.
Out of the contract amount, P153.066 million will be for the diesel requirement of the Bataan power facility; its fuel oil needs would amount to P334.554 million; about P281.926 million for the fuel needs of Bauang power plant; and P97.723 million will be for the Subic diesel plant.
Based on Napocor’s procurement process, the winning bidders are required to post performance security for each delivery point which shall remain valid and effective for the entire duration of the contract, including extension and additional 60 days from Napocor’s acceptance of last delivery.
The required performance security shall amount to five percent of the total contract price and must be submitted either in cash, manager’s/cashier’s check or an irrevocable letter of credit.
The other form could be by surety bond which shall amount to 30 percent of the total contract price, which must be callable on demand and issued by the Government Service Insurance System.