Chinese-led group to bid for Agus VI rehab

MANILA, Philippines - The government has moved a step closer in the rehabilitation of the Agus VI hydroelectric power plant in Iligan City, a development seen to help address the prevailing power crunch in Mindanao.

The Power Sector Assets and Liabilities Management Corp. (PSALM), the government agency tasked to sell the state-owned power assets, has reported that China-based Guangxi Hydroelectric Construction Bureau and its local joint venture partner ITP Construction Inc. emerged as the lowest bidder for the uprating project during the opening of bids last Friday.

The Agus VI uprating project intends to increase the power output of Units 1 and 2 of the power plant to 34.5 megawatts from 25 MW each, and extend their economic life to another 30 years.

Specifically, the uprating project will include the investigation, design, engineering, manufacturing, installation, testing and commissioning of the new hydropower turbines and blades of the two Agus VI power units, as well as replacement of electrical equipment, materials and devices necessary for the safe and reliable operation of the power facilities, PSALM said.

Upon awarding, the project is expected to be completed within 900 calendar days.

Bids and Awards Committee chairperson Manuel Marcos Villalon II said Guangxi’s bid could translate to potential savings for the government.

“Using the non-discretionary criteria prescribed under the procurement law, Guangxi Hydroelectric submitted the lowest offer as read, which can translate to potential savings amounting to more than P1 billion for the government,” Villalon said.

However, PSALM stressed that the submission has yet to go through post-qualification procedures.

 â€œThe submission, however, will still be subject to detailed evaluation and post-qualification to determine whether the winning bidder as read is compliant with and responsive to the requirements and conditions set forth in the bidding documents,” Villalon said.

Guangxi Hydroelectric, which offered the lowest bid of P1.59 billion for the uprating project, bested the joint venture among HydroChina ZhongNan, Harbin Electric Machinery Co. Ltd. and BSP & Co. Inc. which offered P1.68 billion for the uprating project.

Nonetheless, PSALM said both bids were within the approved budget for the contract amounting to P2.6 billion. The financial bid envelope of a third bidder did not qualify to enable it to proceed with the opening of its bid, PSALM also said.

The 200-MW Agus VI power plant is a run-of-river hydro plant located downstream of the famed Maria Cristina Falls in Fuentes, Iligan City. The plant consists of Units 1 and 2 with rated capacities of 25 MW each, and Units 3, 4 and 5 at 50 MW each, according to PSALM.