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By Euan Paulo C. Añonuevo Reporter
STATE-RUN Power Sector Assets and
Liabilities Management Corp. (Psalm) on Wednesday declared a failure
of bidding for the decommissioned Manila Thermal Power Plant.
In a statement, Psalm, which is
tasked to dispose of the government’s power assets, said it
declared the auction for the retired plant a failure after bidders
JC Ethanol and Metal Trading Corp. as well as Gagasan Steel Inc.
failed to meet the required technical bid and financial bid,
respectively.
Jose C. Ibazeta, Psalm president,
informed Gagasan that its offer for the power plant failed to meet
the reserve price, forcing the agency to declare the bidding a
failure.
Wednesday’s bidding was the
third attempt to privatize the facility. The first two auctions —
held in the first quarter of 2005 and the first quarter of 2007 —
failed primarily due to lack of investor interest.
Apart from the plant equipment,
auxiliaries and accessories, the package also includes the
underlying land to attract more participants in the privatization of
the Manila-based decommissioned asset.
Measuring two hectares, the land
is ideal for industrial purposes and is located in a prime area. It
is near SM Manila and other commercial centers.
The government is hard-pressed to
dispose of its power-sector assets to comply with a law that
requires the sale of at least 70 percent of those assets prior to
the start of an open-access regime, which promises lower electricity
costs as consumers would be allowed to choose their suppliers.
A number of bills had been filed
in Congress to amend the Electric Power Industry Reform Act of 2001
and lower the privatization threshold so open-access may begin at
the soonest time. Philippine electricity costs are among the highest
in Asia.
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