2 groups seen to bid for Limay power plant

MANILA, Philippines – Two groups have expressed interest to purchase the 620-megawatt (MW) Limay combined cycle power plant, the Power Sector Assets and Liabilities Management Corp. (PSALM) said yesterday.

PSALM president Jose Ibazeta said the two bidders attended the pre-offer conference last April 30 to discuss the procedures for the plant’s sale.

Ibazeta said PSALM, the state agency tested to oversee the sale of the National Power Corp.’s assets, would still employ the same two-bidding envelope system it uses for its regular biddings to determine the winner.

The bid submission deadline for the Limay bid is on June 19 while the submission of documentary deliverables will be until May 15.

The two investor groups have until June 17 to conduct their due diligence on the Bataan-based asset.

Ibazeta informed the representatives of the two groups that PSALM had extended its operations and maintenance (O&M) agreement with Alstom Philippines Inc. to ensure the maintenance of the plant until its eventual turnover to the winning bidder.

The winning bidder will have the option to pre-terminate the O&M contract without incurring penalties so long as it can assure PSALM of the closure of the Limay plant sale.

In 1992, the government, through the Napocor entered into an O&M agreement with ABB Power Generation Ltd. for the operation, maintenance and repair of the Limay plant.

In 2000, Alstom became the counter-party of Napocor to the O&M agreement, which expired in April 2008 for Block A and in October 2008 for Block B.

Commissioned in 1993, the Limay power plant comprises two 310-megawatt modules, Blocks A and B, which consist of three 70-MW gas turbines and a 100-MW steam turbine, respectively.

Located in Li-may, Bataan approximately 145 kilometers west of Manila, the plant is designed to meet the base-load demand of the Luzon grid.

Prior to the negotiated sale, the Limay plant underwent two unsuccessful biddings in April and September 2008. On both occasions, only one bidder submitted documentary deliverables.