Mindoro Grid wins bid for Malaya O&M contract

MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has declared Mindoro Grid Corp. as the lowest bidder for the one-year contract of 650-megawatt (MW) Malaya Thermal Power Plant in Rizal.

In a statement, PSALM said Mindoro Grid offered P227 million for the one-year operation and maintenance service contract (OMSC) of the Malaya plant, beating the P258 million offer of Soosan ENS Co., Ltd., the other bidder that participated in the bid opening activity.

The Malaya TPP OMSC has an approved budget of P264 million which will be sourced from PSALM’s 2018 and 2019 Corporate Operating Budgets.

In accordance with the Implementing Rules and Regulations of Republic Act 9184 or the Government Procurement Reform Act, the bidder will need to undergo post-qualification evaluation before the contract can be awarded.

Part of the responsibilities under the service contract include the day-to-day upkeep, management and maintenance or repair of the power plant and its equipment.

The Malaya TPP is being managed by PSALM through an OMSC. The current operator of the power plant is STX Marine Service Co. Ltd. whose contract will expire on Aug. 25.

Located in Pililia, Rizal, it consists of a 300-MW unit with a once-through type boiler and a 350-MW unit fitted with a conventional boiler.

It was last rehabilitated in 1995 by Korea Electric Power Corp. under a 15-year rehabilitate-operate-manage-maintain agreement.

The Malaya power plant was designated as a Must Run Unit (MRU) by the Department of Energy (DOE) to address supply deficiency when operating power plants in the grid suddenly bog down or become unavailable.

It will operate as a MRU until the DOE finalizes its privatization schedule.