After failing to award the Naga Power Plant twice because of lack of interest among investors, the Power Sector Assets and Liabilities Management Corp. (Psalm) will conduct the third round of the bidding
for the 153.1-megawatt (MW) power plant complex in Cebu.
In the publication of its Invitation to Bid (ITB), the state-run agency said that it has commenced the third round of bidding for the sale of the 153.1-MW Naga Power Plant.
”After obtaining the necessary approval from the board of directors, we have formalized the commencement of the Naga sale process through the ITB publication, which will run in local newspapers from 06 February 2014 to 08 February 2014,” Emmanuel Ledesma Jr., Psalm president and chief executive officer said.
As stated in the ITB, interested parties must submit to Psalm a Letter of Interest and pay the nonrefundable participation fee of P120,000 not later than 5:00 p.m. on February 14, 2014.
As prerequisite for the issuance of the bidding package, investors must also submit a confidentiality agreement and undertaking with Psalm on or before 5 p.m. of February 17, 2014.
The deadline for the submission of bids is on March 31, 2014 at 12:00 noon, with the opening and evaluation of bids commencing thereafter.
Located in Colon, Naga City, Cebu, the Naga Power Plant consists of two thermal power plants and one diesel-fired power plant that use a combination of coal, bunker C oil, and diesel as fuel.
Specifically, these plants are the 52.5-MW Cebu 1 and 56.8-MW Cebu 2 coal-fired thermal power plants, and the 43.8-MW Cebu Diesel Power Plant 1 composed of six 7.3-MW bunker-C fed power units.
Psalm held the bidding for the Cebu-based power facility twice last year and failed.
On July 2013, Psalm, through its Privatization Bids and Awards Committee, declared a failure of the first round of bidding for the Cebu-based power asset after only one bidder submitted documentary deliverables that were deemed compliant by the committee.
The second round of bidding, held on November 2013, was likewise declared a failure after only one bidder submitted a bid.