Manila, Philippines - State-led Philippine National Oil Co.-Exploration Corp. (PNOC-EC) is looking for a technical adviser in line with its plan to build two coal-fired power plants.
The gas and oil exploration arm of state-owned PNOC said it has started the bidding for the “transaction advisor in selecting joint venture partners from the private sector for the development of mine-mouth power plant projects.”
PNOC-EC will pay as much as P26.95 million for the transaction advisor, which will help the company find a partner for its power generation venture.
“Prospective bidders should have completed, within five years from the date of submission and receipt of bids, a contract similar to the project,” PNOC-EC said in a bid bulletin.
In January, PNOC-EC announced its plan to build a coal mine-mouth power plant in Zamboanga Sibugay and another in Isabela.
Each power plant, which will require a joint venture partner, will have a capacity of 100 megawatts that will require an investment of $200 million each.
“We are following the National Economic and Development Authority’s guidelines on joint venture agreements. There are many prospective partners and competitive bidding is best way to get the best deal,” said Joseph Omar A. Castillo, PNOC-EC vice president for business operations.
“We just want minority so up to 49 percent [will be owned by] PNOC-EC,” Castillo said.
The transaction advisor can be a local or foreign firm. Castillo said the transaction advisor will have 135 days to select a joint venture partner for PNOC-EC.
Issuance of eligibility documents is on May 17 to June 22, followed by the distribution of bid documents on June 27 to Aug. 2.
A pre-bid conference is scheduled on July 3 prior to the submission and opening of bids on Aug. 2.
PNOC-EC targets to start mining operations in its Lumbog coal property in Zamboanga Sibugay in the fourth quarter this year.
The coal project is within its coal operating contract 41 – Malangas coal project located in Zamboanga Sibugay. Based in drilling works, recoverable coal resources in the mine is at 2.1 million metric tons.
Last month, PNOC-EC appointed Swiss banking giant UBS AG to lead the energy firm’s push sell 218 million new shares and increase its public float.
To date, the state-led firm has a public float of only 0.21 percent or 4.47 million shares held by the public, which is way below the 10-percent requirement of the local bourse.
Profits of PNOC-EC, which has a minority stake in the Malampaya natural gas project in Palawan, are expected to hit P3.022 billion this year.