MANILA, Philippines - The state-run Power Sector Assets and Liabilities Management Corp. (PSALM) has opened the bidding process for the independent power producer administrator (IPPA) contract to manage the output of the Naga power plant complex in Cebu.
The agency said it has issued an invitation to bid (ITB) to interested parties for the the Naga IPPA bidding that requires the submission of letters of interest not later than June 14.
To acquire the bidding package, participants need to execute a confidentiality agreement and undertaking with PSALM, and pay a non-refundable participation fee of $5,000 on or before June 21.
PSALM will hold the pre-bid conference for the Naga complex IPPA selection on June 25 to discuss in detail the bidding procedures.
PSALM, the government’s power privatization firm, will conduct the bid evaluation for the Naga IPPA selection on Aug. 18.
Upon appointment, the Naga complex IPPA will manage the Naga contracted capacity, which is the aggregate of the contracted capacities of the 39-megawatt (MW) Cebu diesel power plant 1 and the Cebu 1 and Cebu 2 coal power plant complexes, with a total installed capacity of 110 MW.
PSALM is the agency mandated by the Electric Power Industry Reform Act of 2001 to privatize at least 70 percent of National Power Corp.’s power plants and its contracts with third-party power generators.
Once completed, an era of open access and retail competition will commence in the power industry, which would allow consumers, starting with bulk power users, to choose their power suppliers.
This aims to spur efficiency and competition in the once state-controlled power sector that had previously been the single biggest drain to public coffers.