The Power Sector Assets and Liabilities Management Corp. (PSALM) has sold the 54-megawatt decommisisoned Cebu diesel power plant of the National Power Corp. (Napocor) to Taifu Metal Exchange Corp.
Cebu II power plant is the second decommissioned plant that had been disposed of by PSALM.
A Filipino-run company, Taifu Metal, agreed to pay the aggregate amount of $460,000 for the plant equipment, components, auxiliaries and accessories of the Cebu II power plant, excluding the land.
PSALM’s technical working group reviewed the negotiating documents submitted by Taifu Metal and found them compliant with all prescribed requirements, subject to verification of the authenticity and veracity of the submissions.
Established in September 2005, Taifu Metal has been acquiring decommissioned industrial plants as a primary source of scrap metal that can be processed to supply its domestic and international clientele.
Under the terms of the sale, Taifu Metal will be responsible for the dismantling of the plant equipment and the environmental cleanup.
PSALM decided to conduct negotiations with Taifu Metal after two failed biddings. The first bidding failed due to lack of interest, while only one bidder complied with the submission of documentary deliverables in the second bidding.
Located in the municipality of Talavera in Toledo, Cebu, 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 in December 1997.
PSALM sold its first decommissioned power asset in April 2008 after successfully concluding negotiations with Malaysian-based Gagasan Steel Inc. for the sale of the Manila Thermal Power Plant.