Salcon Power bags contract to operate Naga Power plant in Cebu

MANILA, Philippines - Salcon Power Corp., a Filipino-owned power producer, again won the contract to operate and maintain the Naga power plant complex in Cebu, the Power Sector Assets and Liabilities Management Corp. (PSALM) said.

PSALM is the agency tasked to sell and manage the assets of National Power Corp. (Napocor).

Salcon Power already operates the power plant but PSALM had to conduct a new bidding because the company’s contract had already expired.

PSALM president Emmanuel Ledesma Jr. said Salcon Power is the winning bidder for the operations and maintenance (loan) contract of the 153-megawatt Naga Power plant in Cebu.

The government corporation is also in the process of bidding out the plant itself.

Salcon Power also expressed interest in bidding for the plant itself and not just the O&M service contract. Therma Power Visayas Inc. and RD Corp. also expressed interest in the plant.

The actual bidding is set on Oct. 15.

Located in Colon, Naga City, Cebu, the Naga plant consists of two thermal power plants and one diesel-fired power plant that use a combination of coal, bunker oil, and diesel as fuel.

These plants are the 52.5-MW Cebu 1 and 56.8-MW Cebu two coal-fired thermal power plants, and the 43.8-MW Cebu diesel power plant composed of six 7.3-MW bunker oil power units.

PSALM has been trying to sell the Naga Plant but in October 2011 deferred the auction of the facility to give way to an investigation after a lawmaker complained of the “right-to-top” given to Salcon Power – which currently runs the power plant complex.