PSALM coal bidding fails anew

MANILA, Philippines - The bidding conducted by state-run Power Sector Assets and Liabilities Management Corp. (PSALM) for the purchase of P500 million worth of coal failed anew, officials said.

The company will conduct a new round of bidding to ensure continuous operations of the Naga power plant in Cebu.

“The Aug. 14, local coal bidding was declared as failed since no bid was received on the bid submission date,” PSALM president and CEO Emmanuel Ledesma Jr. said in a text message.

A pre-bid conference was scheduled on July 30 while the opening of the bids was set on Aug. 14.

PSALM allotted P439.8 million as the approved budget for the contract to pay for the supply and delivery of 84,000 metric tons of coal to the Naga power plant complex.

The coal supply for the 145.8-megawatt (MW) Naga power plant complex, should have been blended with around 10 percent of local coal.

Amid several failures, PSALM will still seek coal suppliers.

“PSALM will commence another round of bidding to ensure the continuous supply of coal for the Cebu thermal power plant,” Conrad Tolentino, PSALM vice-president for Asset Management, said in a text message.

In May, PSALM conducted a bidding for P488 million worth of coal supply for the power complex. The coal supply was subject to several failed biddings in April and February this year.

The Naga power complex is operated and maintained by SPC Power Corp.

SPC entered into a deal with the National Power Corp. (Napocor) to rehabilitate, operate, maintain and manage the Naga power plant complex starting in 1994.