Sale of Sucat power plant attracts 9 bidders – PSALM

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM), the government agency tasked to privatize state-owned power assets, has attracted nine investor groups for the sale of the decommissioned 850-megawatt (MW) Sucat thermal power plant, its top official said.

PSALM president and chief executive officer Emmanuel Ledesma Jr. said the nine prospective bidders consist of six Filipino firms and three foreign companies.

“As PSALM kicks off its 2014 privatization activities with the sale of the decommissioned Sucat plant, we’re pleased to report the participation of these nine investor groups,” Ledesma said.

All nine prospective bidders submitted their letters of interest before the Dec. 19 deadline. They have likewise paid the P100,000  participation fee and executed a confidentiality agreement and undertaking with PSALM, Ledesma said.

PSALM has set a Jan. 7 pre-bid conference with prospective bidders at its Makati City office. The submission and evaluation of bids, meanwhile, is scheduled on March 12, also at the PSALM office.

According to its privatization program for the Sucat plant, PSALM is selling all plant equipment, structures, auxiliaries and accessories of the Sucat plant on an “as is, where is” basis.

Located in Sucat, Muntinlupa City, the decommissioned plant is an oil-fired power plant that was previously owned by the Manila Electric Co. (Meralco), the country’s biggest power distributor.

The National Power Corp. (Napocor), the state-owned power corporation, acquired the plant in November 1978.  It consists of Unit 1, which has a rated capacity of 150 MW; Units 2 and 3, each with 200 MW; and Unit 4, which is rated at 300 MW.

Formerly known as the Gardner Snyder Thermal Plant, the Sucat plant officially commenced commercial operations on Aug. 1, 1968 after the completion of Unit 1. Units 2-4 followed operations after their construction in 1970, 1971 and 1972, respectively.

In January 2000, Units 1 and 4 were decommissioned and placed under preservation.  Units 2 and 3 followed in January 2002.