MANILA, Philippines - Two of the country’s major oil players, Pilipinas Shell Petroleum Corp. and Petron Corp., have won the bid to supply fuel for National Power Corp. (Napocor) power plants being handled by the Power Sector Assets and Liabilities Management Corp. (PSALM).
PSALM said Shell and Petron will specifically supply the industrial fuel oil (IFO) requirements of PSALM for the second half of 2011.
Under the Electric Power Industry Reform Act (EPIRA) of 2001, PSALM will handle all the finances and privatization of Napocor, including the procurement of the fuel needed to run the Napocor plants.
After completing the bid evaluation and the post qualification process, PSALM declared Shell’s offer of P5.27 billion for the 150,000-kiloliter (kL) IFO requirements of the Malaya Thermal Power Plant as the lowest calculated and responsive bid (LCRB).
PSALM said it also affirmed the bids of Petron for the IFO requirements of its Mindanao-based power plants that consist of Power Barge (PB) 104, Southern Philippines Power Corp. (SPPC) and Western Mindanao Power Corp. (WMPC).
Petron offered P525 million for the supply of 14,000 kL of IFO for PB 104; P933 million for the 26,500-kL IFO requirement of SPPC; and P1.62 billion for the 46,500-kL requisite of WMPC.
PSALM issued the notices of award to both suppliers last July 8.