MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM), the government agency tasked to privatize state-owned power assets, has awarded the contract to operate and maintain the 650-megawatt Malaya Thermal Power Plant in Pililla, Rizal.
“Malaya OMSC (operations and maintenance service contract) is already awarded. STX Marine is the OMSC for Malaya,” said PSALM president Emmanuel Ledesma, Jr.
This amid doubts raised by other industry players on the financial capability of STX Marine.
The company offered the lowest bid amounting to P302.149 million or below Malaya’s approved procurement budget of P451 million.
Based on the financial records of STX Marine for 2013, the company’s total equity is only at around 82,726 million Korean won or around $82.726 million.
According to PSALM’s bid requirements, the bidder should submit a computation of its net financial contracting capacity (NFCC), which must be at least equal to the approved budget contract.
Industry players have urged PSALM to carefully study the financial documents of STXMarine as it would affect its ability to maintain and operate the Malaya plant, a critical plant in times of power supply shortage.
At present, SPC Power Corp. operates and maintains the Malaya facility.
PSALM owns the Malaya plant pending its privatization. The plant consists of a 300-MW unit once-through type boiler and a 350-MW unit fitted with a conventional boiler.
The plant was rehabilitated in 1995 by Korea Electric Power Corp. under a 15-year rehabilitate-operate-manage-maintain agreement.