4 groups eye decommissioned Cebu diesel power plant

Four groups are likely to bid for the decommissioned 54-megawatt Cebu diesel power plant II (Cebu II) in late January next year, the Power Sector Assets and Liabilities Management Corp. (PSALM) said.

PSALM said the groups attended the pre-bid conference for the decommissioned power facility although it admitted that the interested parties want to thresh out concerns regarding the sale of the non-generating power asset, specifically the bidding procedures.

PSALM, an entity tasked to handle the privatization of the National Power Corp. (Napocor) assets, said the groups are all made up of Filipino investors.

These parties had submitted all the preparatory requirements for the Cebu II power plant auction, with two of the four groups participating in PSALM’s bidding for the first time.

As stipulated in the bid invitation issued last October, PSALM said it is selling only the “structures, plant equipment, auxiliaries and accessories” of the Visayas-based power asset.

The interested bidders are currently conducting due diligence on the Cebu II power plant. This activity will continue until Jan. 19, 2009.

PSALM will hold the bidding for the decommissioned facility on Jan. 21, 2008.

The Cebu II power asset has three generating units which were commissioned between May 1982 and April 1983. 

Originally designed to operate as a base-load plant, the Cebu II facility underwent preservation on Dec. 1, 1997. It is located in the municipality of Talavera in Toledo, Cebu province.

PSALM successfully sold its first decommissioned power asset early this year after concluding the negotiated sale of the Manila thermal power plant with Gagasan Steel Inc.

Last May, PSALM issued the notice of award to Gagasan Steel, formally declaring the company as the new owner of the retired power plant.