PSALM starts bidding process for coal needs of Naga power plant

MANILA, Philippines - State-run Power Sector Assets and Liabilities Management Corp. (PSALM) started yesterday the bidding process for the coal requirements of the Naga power plant complex for this year.

PSALM said it has issued the invitation to bid (ITB) which states that the procurement project will involve the supply and delivery of imported steaming coal for the Naga I coal-fired thermal plant and local blending coal for Unit II of the Naga complex in Cebu.

The procurement project will involve two schedules: first, to procure 55,000 metric tons (MT) of imported steaming coal for Naga I second, to acquire 85,000 MT of local blending coal for Naga II.

PSALM said the approved budget for the contract (ABC) for Schedule I is $8.2 million, while the ABC or contract ceiling for Schedule II amounts to P499 million. The funding for the procurement project will be sourced from PSALM’s 2011 operating budget.

As a requirement for eligibility and issuance of the bidding documents, prospective bidders are required to pay a non-refundable fee of P20,000 for each schedule.

PSALM will hold a pre-bid conference for prospective bidders on Feb. 8 at 10 a.m. for Schedule I and at 2 p.m. for Schedule II at its main office in Makati City to discuss the bidding procedures and the salient features of the procurement project.

Deadline for submission of bids is on Feb. 21 at 10 a.m. for Schedule I and at 2 p.m. for Schedule II. Bid opening and evaluation will commence at 10:15 a.m. and at 2:15 p.m., respectively.

On June 7, 2010, PSALM published the ITB to start the selection process for an independent power producer administrator (IPPA) to manage the Naga power plant complex.

Interested bidders have been prequalified for the Naga complex bidding, but the submission of bids has been deferred to a date to be determined by PSALM Board.