10 groups eye contract for Leyte geothermal plant

MANILA, Philippines - Ten companies have expressed interest in bidding for the management contract for the Unified Leyte geothermal power plant, the Power Sector Assets and Liabilities Management Corp. (PSALM) said yesterday.

The 10 prospective bidders are Aboitiz Renewables Inc., DMCI Power Corp.FDC Utilities Inc. Global Business Power Corp., Marubeni Corp., Philippine Associated Smelting and Refining Corp. (Pasar), PowerOne Ventures Energy Inc., Trans-Asia Oil and Energy Development Corp., Unified Leyte Geothermal Energy Inc. and Vivant Energy Corp.

In addition, there are 21 interested parties – including industrial corporations, electric cooperatives and private power firms – interested in the independent power producer administration (IPPA) selection for the strips of energy.

“This remarkable turnout of bidders, which notably includes the biggest players in the industry, indicates not only the private sector’s support for the government’s privatization initiatives, but also the private sector’s recognition of the reforms being undertaken by PSALM to ensure that the biddings are conducted in the most professional and transparent manner,” said PSALM president and CEO Emmanuel Ledesma Jr.

PSALM has set the opening of bids for Unified Leyte on Oct. 29, right after the lapse of the 10 a.m. bid submission deadline.

An IPPA can win the rights to strips of energy from the Unified Leyte that range from one megawatt up to a maximum of 40 MW. Out of the 240-MW sum of strips, only 200 MW will be offered to IPPAs, with the 40 MW remaining with PSALM as security capacity.

The IPPA for the bulk energy will have the right to the capacity in excess of the 240-MW sum of strips. The obligation to trade Unified Leyte’s total output (bulk and sum of strips) as well as the necessary registration applications required by the Wholesale Electricity Spot Market shall lie solely with the IPPA for the bulk energy, PSALM said.

The Unified Leyte plant is comprised of the 125-MW Upper Mahiao, 232.5-MW Malitbog, 180-MW Mahanagdong power plants, and the 51-MW optimization plants, PSALM said.

The plant, located in Tongonan, Leyte, is covered by power purchase agreements between state-run National Power Corporation and Lopez led Energy Development Corp.