Mt Apo power plants attract 7 bidders

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM), the agency tasked to privatize state-owned power assets, said the bidding for the output of the Mindanao I and II (Mt. Apo 1 and 2) geothermal power plants has attracted seven investor groups.

PSALM president and chief executive officer Emmanuel Ledesma Jr. said based on their evaluation of the documentary deliverables it received from the prospective bidders, only seven investor groups have qualified in the auction of the independent power producer administrator (IPPA) for Mt. Apo 1 and 2 geothermal power plants.

The IPPA will manage the output of Mt. Apo 1 and 2 plants.

“Based on the evaluation conducted by PSALM of the documentary deliverables that it received from the prospective bidders, and as approved by the Privatization, Bids and Awards Committee, only seven investor groups have qualified to participate in the Mt. Apo 1 and 2 IPPA auction scheduled on Sept. 24, 2014,” Ledesma said.

PSALM said the groups that have qualified for the bidding are EDC Mindanao Geothermal Inc, FDC Misamis Power Corp., GDF Suez Energy Philippines Inc., SMC Global Power Holdings Corp., Therma Southern Mindanao Inc., Trans-Asia Oil and Energy Development Corporation and Vivant Geo Power Corp.

The prequalified bidders have been issued with the final IPPA administration agreement for Mt. Apo 1 and 2. They have until Sept. 24 to submit their bids, which will be followed by the opening and evaluation of the offers.

The bidding is PSALM’s first IPPA auction in Mindanao.

The Mt. Apo 1 and 2 geothermal power plants have a rated capacity of 54.24 megawatts each and are located in Kidapawan City, North Cotabato.

The plants are owned and operated by the Energy Development Corp., the Lopez-owned geothermal company and were commissioned in February 1997 (Mt. Apo 1) and in June 1999 (Mt. Apo 2) under a build, operate and own contract scheme.

The cooperation period for both plants is 25 years, and will expire in February 2022 and in June 2024 for Mt. Apo 1 and 2, respectively.