PSALM to auction IPPA for Mt. Apo 1 and 2 this quarter
Steam pipes at Mount Apo, Mindanao Philippines (source: flickr/ penmanila)
Alexander Richter
14 Apr 2014
PSALM will proceed with the auction for the appointment of independent power producer administrator (IPPA) for the Mt. Apo 1 and 2 geothermal plants with a combined capacity of 108 MW.
Business World Online reports today that the Power Sector Assets and Liabilities Management Corp. (PSALM) will proceed with the auction for the appointment of independent power producer administrator (IPPA) for the Mt. Apo 1 and 2 geothermal plants, according to president and chief executive officer of PSALM.
“We are currently finalizing the bidding procedures, and we will issue the invitation to bid as soon as necessary approvals and procedures are completed,” Mr. Ledesma said in a text message.
He said the company aims to publish the invitation to bid by the end of the second quarter.
“We plan to schedule the actual submission of bids in the third quarter,” Mr. Ledesma added, noting that awarding is also targeted for the same quarter.
PSALM last January secured its directors’ approval to prepare for the bidding process. Mr. Ledesma had said the winning bidder will be in charge of selling the capacity generated by the two power plants under two separate IPP contracts.
Each power plant has a capacity of 54.24 megawatts (MW).
Located in Kidapawan City, North Cotabato, the power plants were commissioned on Feb. 15, 1997 and June 17, 1999 under a build-operate-and-own contract with Energy Development Corp.
The cooperation period for both plants is 25 years and will expire on Feb. 15, 2022 and June 17, 2024, respectively.
