Bidding for small hydroelectric power plant fails

The bidding for the 0.8-megawatt (MW) Amlan hydroelectric power plant was declared a failure yesterday after only one prospective investor tendered an offer.

Sources said the only bidder that submitted an offer was Sta. Clara International Corp., the same company that earlier bought the 1.2-MW Loboc hydropower plant in Bohol.

The Power Sector Assets and Liabilities Management Corp. (PSALM) earlier adjusted the bidding for Amlan to accommodate the request of prospective bidders who said they needed more time to conduct their due diligence activities.

Aside from Amlan, PSALM also decided to move the bidding for the 289-MW Tiwi and 458.53-MW Makban geothermal power facilities to July 30.

The hydroelectric plant, located at Amlan, Negros Oriental, is the first power facility constructed in the province.

The plant consists of two horizontal shaft type 400-kilowatt turbine generators and is designed to operate as a base-load plant supplying power to the town of Amlan and nearby villages.

The bid covers the generating assets, which are being offered on an “as is, where is” basis, structures and improvements, spare parts, and general plant equipment.

Despite the bidding, however, setback, PSALM noted its sale of the generating assets of National Power Corp. (Napocor) has been very successful in the last two years.

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

Last year, the government’s privatization program was further strengthened with the sale of the 600-MW Masinloc and 600-MW Batangas (Calaca) coal-fired power plants, and the 175-MW Ambuklao-Binga hydroelectric power plant package.

Amlan is expected to be the second asset be sold this year.

PSALM had sold the decommissioned Manila Thermal Power Plant (MTPP) through a negotiated bid to Gagasan Steel for $2.5 million.

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