PSALM names highest bidder for Leyte contracts, Philippines
Tongonan, Leyte Geothermal power plant, Philippines
Alexander Richter
8 Nov 2013
PSALM names the highest bidders for the independent power producer administrator (IPPA) contracts of the Unified Leyte geothermal power plant’s contracted capacity in the Philippines.
Reported today, Power Sector Assets and Liabilities Management Corp. (PSALM) has named the highest bidders in an auction for capacity off the Unified Leyte geothermal plants, that took place Nov. 7-8 in Makati City, Manila, Philippines.
“The state-run firm auctioned off Unified Leyte’s contracted capacity in “strips” and “bulk”, with a total of 200 megawatts in strips for the IPPAs. Bidders could submit offers for strips ranging from one to 40 MW.
The remaining 40-MW capacity of the power plant was auctioned off as “bulk energy”.
The output of the power plant can be traded by the winning bidders in the Wholesale Electricity Spot Market upon registration with the market operator, PSALM said.
PSALM, on Friday, declared seven highest ranking bidders for the strips of energy:
- FDC Utilities, Inc. (FDCUI), which offered a generation payment of P5.2588 per kilowatt-hour for 40 MW;
- Unified Leyte Geothermal Energy Inc. (ULGEI), a unit of Energy Development Corp. that offered P5.2100/kWh for 40 MW;
- Trans-Asia Oil and Energy Development Corp., which offered P5.0166/kWh for 40 MW;
- Aboitiz Energy Solutions, Inc., which offered P4.9188 per kWh for 40 MW;
- Waterfront Mactan Casino Hotel Inc., which offered P4.9/kWh for 3 MW;
- Good Friends Hydro Resources Corp., which offered P4.88/kWh for 20 MW; and
- Vivant Energy Corp., which offered P4.6629/kWh for 17 MW.
All the highest ranking bids for the 200 strips of energy exceeded the reserve price that was set by the PSALM Board,” the state firm said.
PSALM added that, following the bidding results, Vivant’s PhP4.6629/kWh offer was declared the winning price for the strips of energy.
PSALM President and Chief Executive Officer Emmanuel R. Ledesma Jr. said the winning price will be “the uniform generation payment that will be adopted by all the winning bidders”.
He added that the highest ranking bidders will still have to undergo and pass the post-qualification stage before being declared the winning bidders.
“The PSALM Privatization, Bids Awards Committee (PBAC) will conduct post-qualification on the highest ranking bidders to determine the accuracy, authenticity and completeness of all their documentary submissions, including the standby letters of credit and their full compliance with the Bidding Procedures,” Mr. Ledesma said in the statements.
A total of 11 bidders participated in the auction. The other firms were AC Energy Holdings, Inc.; Negros Occidental Electric Cooperative, Inc.; PowerOne Ventures Energy Inc.; and Renagmec Power Corporation, Inc.
Likewise, PSALM named the highest bidder of the three firms that participated for the bulk energy.
“ULGEI tendered a bid of P215 million for the IPPA for bulk energy, and [this] is the only bid that met the reserve price set by the PSALM Board,” the statement read.
The other two bidders were Trans-Asia and Aboitiz Renewables, Inc.
“ULGEI will likewise undergo post-qualification stage before being declared as the winning bidder to determine the accuracy, authenticity and completeness of all their documentary submissions, including the standby letter of credit and their full compliance with the bidding procedures,” PSALM noted.
PSALM was formed under Republic Act 9136 or the Electric Power Industry Reform Act of 2001 to assume ownership of and manage all National Power Corp.’s assets, liabilities, contracts with independent power producers, real estate and other disposable assets.”
Source: Business World Online
