PSALM commences the privatisation of Mt Apo Geothermal plants

Francisco Rojas 15 May 2014

The Power Sector Assets and Liabilities Management Corporation has initiated the privatisation of the government share of geothermal plants in Mindanao. Interested parties must submit a letter of interest to apply.

The Mt. Apo 1 and Mt. Apo 2 geothermal power plants have a rated capacity of 54.24 megawatts each, and are located in Kidapawan City, North Cotabato.

Owned and operated by the Energy Development Corp, the power plants were commissioned on February 15, 1997 (Mt. Apo 1) and June 17, 1999 (Mt. Apo 2) under a build, operate, and own contract scheme.

The cooperation period for both plants is 25 years, and the same will expire on February 15, 2022 and June 17, 2024 for Mt. Apo 1 and 2, respectively.

State-run Psalm today released the invitation to bid (ITB) for the selection and appointment of the independent power producer administrator (IPPA) of the Mindanao I and II (Mt. Apo 1 and 2) geothermal power plants.

“The Mt. Apo IPPA will manage government’s contracted energies in the Mt. Apo 1 & 2 plants, which are 390 gigawatt-hours (GWh) and 398 GWh per year, respectively,” Emmanuel R. Ledesma, Jr., Psalm president and chief executive officer, said.

The privatization of the Mt. Apo contracted capacity is Psalm’s first IPPA auction in Mindanao.

Based on Psalm’s ITB, all interested parties must submit a letter of interest (LOI) not later than 5 p.m. of May 30.

As a prerequisite to the receipt of the bidding procedures, prospective parties must likewise execute a confidentiality agreement and an undertaking with Psalm, and pay a non-refundable participation fee of P120,000. The deadline for these prerequisites is on or before 5 p.m. of June 6.

Psalm will hold a pre-bid conference on June 26 at 2 p.m. in preparation for the bidding, scheduled on September 24. The ITB specified that the bid submission deadline is on September 24 at exactly 12 noon.

Source: Interaksyon News Website