PSALM opens 3rd bidding round for Naga power complex operation

MANILA, Philippines - State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has opened the third round of bidding for the P319-million contract to operate a power plant complex in Cebu.

The company is also seeking suppliers for P119 million worth of coal that will fuel the power plant.

In a public notice, PSALM said has allotted P319.389 million for the operation and maintenance service contract (OMSC) for the 145.8-megawatt (MW) Naga power plant complex.

Prospective bidders should pay a non-refundable fee of P50,000 for bid documents, which were made available starting yesterday.

PSALM scheduled a pre-bid conference on Nov. 7 to discuss technical aspects of the project.

Bid submission and opening is scheduled on Nov. 20.

“Bids received in excess of the approved budget for the contract shall be automatically rejected at bid opening,” PSALM said.

“Bidders should have completed within five years before the date of submission and receipt of bids a contract similar to the project,” it added.

In June, the second round of bidding for the contract to operate the Naga power plant complex Cebu failed because only SPC Power Corp. submitted an offer.

The first bidding for the Naga complex’s OMSC failed when PSALM received no offer last Feb. 27.

In March, SPC bagged a six-month contract to continue operating and maintaining the Naga plant complex, with PSALM committing to pay the listed firm P148.99 million for its services. Early this month, the deal was extended by another three months.

SPC, formerly Salcon Power Corp., is a company led by the Salcon Consortium that entered into a deal with the National Power Corp. to rehabilitate, operate, maintain and manage the Naga power plant complex starting in 1994.

In a separate bid notice, PSALM said it has allotted P119.53 million for the supply of 25,000 metric tons (MT) of coal.

The coal will be used to continue operations of the Naga power plant complex.

Pre-bid conference is set on Oct. 30 while bid submission and opening is scheduled on Nov. 13.

In August, PSALM’s bidding to buy 84,000 MT of coal worth P439.8 million for the power plant failed anew.

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

The Naga complex is composed of three thermal power plants that use a combination of diesel, bunker C oil and coal as fuel.