PSALM opens bidding for Iligan power plant

The Power Sector Assets and Liabilities Management Corp. (PSALM) has opened the bidding process for the 114-megawatt (MW) Iligan I and II diesel power plant complex in Northern Mindanao.

PSALM said the sale of the Iligan facilities will kick off the government’s power privatization program for the second semester this year.

The asset manager said it will issue tomorrow the Invitation to Bid (ITB) stating that interested parties have until 5 p.m. of July 24 to signify their interest to bid for the asset.

The prospective bidders are also required to execute and undertake a confidentiality agreement and an undertaking with PSALM and pay a non-refundable fee of $2,000 on or before July 25 to be able to obtain a copy of the bidding package, which includes the bidding procedures.

The bid invitation will also allow a due diligence period for qualified investor groups from July 14 to Oct. 8.

PSALM will hold a pre-bid conference for the potential bidders on Aug. 1 at its main office in Makati City.

It has set the bidding for the Iligan-based power plant complex on Oct. 15, the two-envelope bidding system which has been used in previous biddings.

Situated in the locality of Mapalad, Dalipuga in Iligan City, approximately 74 kilometers southwest of Cagayan de Oro City, the complex runs on Bunker C and/or diesel fuel types for its start-up and shutdown operations. Both units were commissioned in 1993.

PSALM noted that its sale of the generating assets of National Power Corp. (Napocor) has been very successful over the past two years.

It sold the 112-MW Pantabangan-Masiway plant package and the 360-MW Magat hydropower plants in 2006.