PSALM resets bidding for contract to manage Mindanao coal facility

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM) has pushed back the bidding for the privatization of the output of the 210-megawatt Mindanao coal-fired power plant in Misamis Oriental to November this year.

In a statement, PSALM president and CEO Lourdes Alzona said the bidding for the independent power producer administrator (IPPA) of the plant has been reset to Nov. 25, 2015.

“In consideration of the Department of Energy’s directive to defer the Mindanao Coal IPPA selection and appointment, we have informed our bidders that the bid submission deadline had been moved to 12 noon of Nov. 25, 2015,” she noted.

The auction was originally set on Sept. 23.

In its directive, the DOE said it has requested to delay the bidding because the winning IPPA could dictate electricity prices amid the power supply shortage in Mindanao.

However, PSALM said it would mandate a constant rate, or a lock-in rate, for two to three years to prevent that from happening.

Mindanao Coal, located in Misamis Oriental, is operated by Germany-based Steag State Power Inc. under a 25-year build-operate-transfer (BOT) power purchase agreement scheme until 2031.

Last month, Alzona said six groups bought bid documents for the Mindanao Coal IPPA, down from the 12 power companies that have expressed interest in administering the output of the Mindanao power plant last April.

The 12 power companies that have expressed interest in the asset are Conal Holdings Corp., FDC Davao Del Norte Power Corp., FirstGen Northern Power Corp., GDF Suez Energy Philippines Inc., Masinloc Power Partners Co. Ltd., Meralco Powergen Corp., Nexif Pte Ltd., SMC Global Power Holdings Corp., SPC Power Corp., Team (Philippines) Energy Corp., Vivant Energy Corp. and Therma South.

Alzona explained that some of the companies opted to jointly bid for the contract resulting in the lower turnout of interested bidders.