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Wednesday, February 26, 2020
Home Business Top Business Fuel supply for Rizal thermal plant sought

Fuel supply for Rizal thermal plant sought


THE Power Sector Assets and Liabilities Management Corp. (Psalm) is soliciting offers to fulfill the fuel requirements of the 650-megawatt (MW) Malaya Thermal Power Plant in Rizal province this year.

In its invitation to bid, the state-run corporation said it was  bidding out the supply and delivery of industrial fuel oil and diesel oil for the facility this year.

Psalm has approved a contract price of P690 million for industrial fuel oil and P21.8 million for diesel oil.

Bidding will be conducted through open competitive bidding procedures using a non-discretionary “pass/fail” criterion.

The state-led firm will hold a pre-bid conference on August 9 to clarify and address questions of bidders on the technical and financial components of the project.

Interested parties have until August 23 to submit their proposals to Psalm and must pay the applicable fee for the bidding documents amounting to P75,000 (industrial fuel oil) and P25,000 (diesel oil).

“Psalm reserves the right to accept or reject any and all bids, declare a failure of bidding, or not award the contract at any time prior to contract award,” it said.

This is open to Filipino citizens/sole proprietorships, partnerships, or organizations with at 60-percent interest or outstanding capital stock belonging to citizens of the Philippines, and to citizens or organizations of a country with laws or regulations that grant similar rights or privileges to Filipino citizens.

Psalm is mandated by Republic Act 9136 or the Electric Power Industry Reform Act (Epira) of 2001 to sell the remaining assets and settle the financial obligations of the National Power Corp. (Napocor).

It has been selling land and power assets to significantly reduce financial obligations until its corporate life ends in 2026.

One of these assets is the Malaya plant in Rizal’s Pililia town. The facility consists of a 300-MW unit with a once-through type boiler and a 350-MW unit fitted with conventional boiler.

In 1995, it was rehabilitated by Korea Electric Power Corp. under a 15-year rehabilitate-operate-manage-maintain agreement.

Psalm awarded in June the P8.5-million contract to PricewaterhouseCoopers (PwC) Philippines to aid them in the privatization of the plant.

In particular, PwC Philippines shall craft financial models and analyses to optimize value for the land and structures of the Malaya plant, while sub-consultant Asian Appraisal Company Inc. shall appraise the land where the thermal facility stands.

Psalm President and Chief Executive Officer Irene Joy Garcia previously said engaging an independent valuator was a prerequisite to the sale of the Malaya plant, since the consultant’s input would be used for determining the floor price for the thermal facility.

South Korean firm Soosan ENS Co., Ltd. holds the contract for the operation and maintenance of the Malaya plant for this year.

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Today’s Front Page February 26, 2020

Today’s Front Page February 26, 2020