THE number of companies interested to bid for the 200-megawatt (MW) Mindanao Coal-Fired Thermal Power Plant (Mindanao Coal) has significantly decreased after the firms decided to form joint ventures for the same project.
From the original 12 firms, only six have signified to join the bidding process, Power Sector Assets and Liabilities Management Corp. (PSALM) President Lourdes Alzona said on Friday.
Alzona explained that some companies have agreed to jointly vie for the project, thus reducing the number of interested bidders.
“The companies that bought the bid documents reached 11 if not 10, and some have decided to go for a joint venture so it was reduced to six,” Alzona said.
PSALM earlier said that a total of 12 companies were eyeing to be the Independent Power Producer Administrator (IPPA) for the power plant.
The companies include Conal Holdings Corp., FDC Davao Del Norte Power Corp., FirstGen Northern Power Corp., GDF Suez Energy Philippines Inc., and Masinloc Power Partners Co. Ltd.
Also part of the original number of firms vying for the project were Meralco Powergen Corporation, Nexif Pte Ltd., SMC Global Power Holdings Corp., SPC Power Corp., Team (Philippines) Energy Corp., Therma Southern Mindanao Inc. (TSMI) and Vivant Energy Corp.
The investor groups, PSALM noted, have complied with the initial requirements to bid for the facility.
PSALM set the deadline for paying the nonrefundable participation fee and executing a Confidentiality Agreement and Undertaking on April 13.
The pre-bid conference was held on May 6, with the bidding proper scheduled on September 23.
Located in Misamis Oriental, the power plant was constructed in 2006 under a 25-year build-operate-transfer (BOT) agreement that covered a power purchase agreement which will end in 2031.
PSALM is a government-owned and -controlled corporation created under Republic Act 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA).
It is tasked to take ownership of all existing generation assets and liabilities as well as real estate and other disposable assets of the National Power Corporation (NPC) and Independent Power Producers (IPP).
It also manages the orderly sale, disposition, and privatization of the NPC assets with the objective of liquidating all NPC financial obligations and stranded contract costs.