PSALM mulls request for extension of Ambuklao-Binga complex bidding process

The Power Sector Assets and Liabilities Management Corp. (PSALM) may consider the request for extension of the bidding process for the 175-megawatt Ambuklao-Binga hydropower plant complex, a PSALM official said.

“They will have to formalize their request and PSALM will evaluate accordingly,” PSALM vice president for asset management and electricity trading Froilan Tampinco said.

But Tampinco said the extension will only apply on the bidding process, not on the bidding proper.

“Extension of the bid date is non-negotiable.  We may agree on extensions of certain deadlines prior to bid date,” he said.

In the last pre-bidding process, a number of prospective bidders raised the issue of lack of time for them to form their respective consortia to bid for the hydropower assets.

The potential bidders assured that should there be any extensions on some areas of the bidding procedure, the bidding date will not be affected.

It was learned that PSALM wants the interested parties to complete the incorporation of their corporate vehicles to bid for the power assets by this week. But the bidders argue that they may need more time to meet this requirement.

The incorporation of these companies at the Securities and Exchange Commission is necessary to enable the winning bidder to take over the asset.

Among the firms that participated in the pre-bid conference are Itogon Power, Ramcar Inc., Sta. Clara Power, AES Ambuklao and Binga Pte Ltd., First Gen Northern Energy, Marubeni Philippines, Kansai Electric Power, SN Aboitiz Power, Suez Tractebel and State Investment Trust Inc.

Sources privy to the pre-bid conference said other concerns were also  raised during the meeting such as the land lease agreements and the volume of transition supply contract (TSC) to be attached to the package.

PSALM has also scheduled the divestment of the 600-mw Calaca coal-fired power facility on Oct. 16.

The package involving the 192.5-mw Palinpinon and 146.5-mw Panay diesel plant will come next; and these are seen to complete the 50-percent privatization of National Power Corp. (Napocor)’s generation assets as targeted by PSALM this year.

Sources also noted that the scheduled bidding for Napocor’s assets will face tough competition with the scheduled sale of a controlling block of leading geothermal power producer Philippine National Oil Co.-Energy Development Corp. (PNOC-EDC) later this year.