The Power Sector Assets and Liabilities Management Corp. (PSALM) failed last Wednesday to sell anew the decommissioned Manila Thermal Power Plant (MTPP), a setback in efforts to fast-track the privatization of National Power Corp. (Napocor) assets.
“It was a failed bidding,” PSALM president Jose Ibazeta said. MTPP is the first power plant scheduled to be sold by PSALM this year.
Though the two pre-qualified bidders submitted bids for MTPP, located at Isla de Provisor in Paco, Manila, Ibazeta said they did not meet PSALM’s requirements.
The government-run asset manager said Gagasan Steel Inc., an affiliate of Malaysia-based Gagasan Steel Sdn Berhad, and JC Ethanol and Metal Trading Corp., a South Korea-based company, submitted their offers before the 12 noon deadline set by PSALM.
But PSALM said JC Ethanol’s technical bid submission was rated “failed” by the PSALM Privatization, Bids and Awards Committee (PBAC), thus preventing it from further participating in the bidding exercise.
Gagasan, on the other hand, reached the opening stage of the financial bid but was informed that its bid offer for the MTPP did not meet the reserve price set by the PBAC.