THE Philippine government will benefit from the participation of San Miguel Corp. (SMC) in the bidding for the 650-megawatt (MW) Malaya Thermal Power Plant Complex (MTPP) in Pililia, Rizal, SMC president and CEO Ramon Ang said Wednesday last week.
“I didn’t know Malaya was up for bidding. A day after I found out about it, I wrote to join the bidding but it started in March and they won’t let me join. What’s the reason for that? It’s more advantageous for government to allow more bidders,” Ang, who is also chairman of SMC Global Power Holdings Corp. (SMC Global), the power unit of the San Miguel Group., said in an interview.
“I join all project biddings to protect the government. I want to join because when I do, the bid is already high. Why am I being prevented from joining? So their friends can buy for cheap? Isn’t that wrong?” Ang asked.
“It’s more advantageous to allow San Miguel to join every government public bidding because when San Miguel joins the bid, government usually gets the best deal,” he said.
“Just look at the Cavite-Laguna Expressway (Calax), we won the bidding. Noynoy ordered a rebid,” Ang said, referring to former President Benigno Aquino 3rd. “Then the award went up from P11 to P27 billion. This is why it’s always good for San Miguel to join bid,” he explained.
On December 20, 2016, after the deadline for the submission of Letters of Interest (LOI), had lapsed, only four companies had submitted their interest to acquire the MTTP. These four companies are APT Global, Inc., PHINMA Energy Corp., Riverbend Consolidated Mining Corp., and AC Energy Holdings, Inc., according to the Power Sector Assets and Liabilities Management Corp. (PSALM).
PSALM is the government agency responsible for the privatization of state-owned power assets and other properties.
Lourdes Alzona, PSALM officer-in-charge president and chief executive officer, said in December last year that the bidding for MTPP was scheduled for March 8 this year.
The 41-year-old Malaya plant was first rehabilitated in 1995 by Korea Electric Power Corp. under a 15-year rehabilitate-operate-manage-maintain agreement. The plant consists of a 300-MW unit with a once-through type boiler and a 350-MW unit fitted with a conventional boiler.