State-run Power Sector Assets and Liabilities Management Corp. (Psalm) has the success of bidding for the decommissioned 850-megawatt (MW) Sucat Thermal Power Plant in Muntinlupa City.
Riverbend Consolidated Mining Corp. submitted the highest offer for the sale of the structures, plant equipment, auxiliaries and accessories of the decommissioned plant on an “as is, where is” basis.
“Riverbend was declared the bidder with the highest offer after it bested two other companies with its P305.2-million proposal,” Psalm Officer-in-Charge Lourdes Alzona announced on Wednesday.
Riverbend is also bidding for another Psalm property, the 650-MW Malaya Thermal Power Plant Complex (MTPP) in Pililia, Rizal.
Based on asset sale provisions, the winning bidder has the obligation to dismantle, clean up and remediate the site, meaning that the buyer shall return the site at present to ground zero (road level), free and clear of wastes, toxic substances, debris and structures.
The Psalm Privatization, Bids and Awards Committee will report results of the sale to the Psalm Board and subsequently issue a Notice of Award upon completion of the post-qualification process.
The two other companies that joined the bidding were VPD Trading and G.G. Uy Bonapor Metal Contractor Company with financial offers of P201.6 million and P168 million, respectively.
The Sucat plant was operational for 33 years before Units 1 and 4 were decommissioned in January 2000, and Units 2 and 3 were shut down in January 2002.
It was initially targeted for conversion into a gas plant, but studies indicated that capital cost for such venture will be heftier compared to putting up a totally new power facility.
Psalm is the government agency responsible for the privatization of state-owned power assets and other pieces of property.
Remaining big power assets still under its management that can be privatized include the 982-MW Agus-Pulangui hydropower complex.