AboitizPower to bid for Mindanao coal plant IPPA

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ABOITIZ Power Corp. (AboitizPower) has expressed interest to bid for the contract to manage the output of the 210-megawatt (MW) Mindanao coal-fired power plant in Misamis Oriental Antonio Moraza, AboitizPower president and chief operating officer said they are partnering with Filipino firm La Filipina for the bid.

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“We’re definitely going for it and we will be very aggressive. We’re bidding and as a matter of fact the bidder is La Filipina. We’re partnering with them,” said Moraza, referring to La Filipina Uygongco Corp.

Located in Misamis Oriental, Mindanao Coal is operated by German firm Steag State Power Inc. under a 25-year build-operate-transfer (BOT) power purchase agreement scheme until 2031. It was constructed in 2006.

Aside from Steag, the other shareholders are Aboitiz Power Corp. and La Filipina Uygongco Corp.

The Power Sector Assets and Liabilities Management Corp. (Psalm) has postponed the bidding for the privatization of Steag’s independent power producer administrator (IPPA) contract for the Mindanao coal-fired power plant to November 25 this year.

The auction was originally set on September 23.

Psalm has already informed the bidders that the bid submission deadline has been moved to November 25, 2015.

The Department of Energy (DOE), in a directive, requested a delay in 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 the winning bidder from raising the cost to electric cooperatives that buy power from the plant.

Psalm said six groups bought bid documents for the Mindanao Coal IPPA, down from the 12 power companies that had expressed interest in April in administering the output of the Mindanao power plant, possibly because some have formed joint ventures.

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.

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