Bidding for Cebu power complex fails anew

MANILA, Philippines - The bidding for the P319-million contract to operate a power plant complex in Cebu has failed for the third time, the state-run Power Sector Assets and Liabilities Management Corp (PSALM) said yesterday.

“The bidding on Friday for the operation and maintenance contract for Naga failed due to no bid was received as of submission deadline,” PSALM president and CEO Emmanuel Ledesma Jr. said in a text message to reporters.

The opening of bids was originally scheduled on Nov. 20 but was reset to Nov. 23 on request of the lone qualified bidder.

“Our option is to extend again the [contract] with SPC Power Corp.,” Ledesma said.

In March, SPC bagged a six-month contract to continue operating and maintaining the 145.8-megawatt (MW) Naga power plant complex, with PSALM committing to pay the listed firm P148.99 million for its services.

Last month, the deal was extended by another three months, which will expire on Dec. 25, Ledesma said.

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

Last October, PSALM opened the third round of bidding for the contract to operate the power complex. The followed failed biddings in June that received only one offer and earlier in February that did not generate investor interest.

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

These power plants are: the 50-MW, coal-fired Cebu Thermal Power Plant 1, the 56.8-MW Cebu Thermal Power Plant 2 and the 39-MW Cebu Diesel Power Plant 1.

PSALM, formed by the 2001 Electric Power Industry Reform Act, is the state firm in charge of privatizing government power assets as well as managing Napocor’s power plants and debt.