STATE-RUN Power Sector Assets and Liabilities Management Corp. (Psalm) has declared a failure of bidding for the privatization of the 153.1-megawatt (MW) Naga Power Facility in Cebu after only one interested group was deemed compliant with documentary requirements.
“The Psalm privatization, bids and awards committee [PBAC], in its July 15 meeting, resolved to declare the proposed sale of the 153.1-megawatt Naga Power Plant as failure of bidding,” Emmanuel Ledesma Jr., Psalm president and chief executive officer, said in a text message to reporters.
Supposed to be bid out on July 24, the Naga Power Plant complex should now remain under the possession of the government until Psalm announces the new date for the auction.
Ledesma said that pursuant to the bidding procedures, “should only one bidder submit documentary deliverables that is deemed compliant by PBAC, there shall be a failure of bidding.”
“Despite the failure, however, Psalm is positive that privatization of the Naga plant can still be achieved within the year. Psalm will proceed with second round of bidding soonest,” he further said.
In June, it was reported by Psalm that five parties are keen to join the auction for the privatization of the Naga Power Plant.
“With the lapse of the deadline for the submission of the initial requirements, the Power Sector Assets and Liabilities Management Corp. reported a total of five investor groups eyeing the Naga Power Plant Complex,” Psalm said in its earlier statement.
Ledesma said that Psalm accommodated these five groups who have expressed their interest for the privatization of the power complex as they submit initial bidding requirements.
He noted that this is the first power asset that Psalm has lined up for privatization this year. Psalm required parties interested to bid to submit a letter of intent and pay a nonrefundable participation fee of P120,000 until May 27.
By that time, Psalm claimed as well that all of these local investors have already fulfilled the initial requirements.
On June 5, Psalm was supposed to hold a prebid conference to discuss the bidding procedures and other issues and concerns that the prospective bidders may have regarding the power plant sale.