PSALM cancels Naga power complex bidding

State-run firm cites lack of qualified bidders for asset

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MANILA, Philippines—The Power Sector Assets and Liabilities Management (PSALM) Corp. has called off Wednesday’s tender of the 153.1-megawatt Naga Power Plant Complex in Cebu, citing lack of qualified bidders.

In a text message, PSALM president and CEO Emmanuel R. Ledesma Jr. said only one of three prospective bidders that submitted “documentary deliverables” was prequalified.

“Disqualified bidders were not compliant with certain financial/technical requirements,” Ledesma said.

The Naga facility may be rebidded “within the year,” Ledesma added.

Bid submission for the NPPC auction was originally scheduled on July 24, after which the opening and evaluation of bids would be conducted.

However, PSALM’s privatization, bids, and awards committee declared a failure of bidding on July 15 as only one prospective bidder was found to have completed the required documentary submissions.

“Despite the failure, however, PSALM is positive that the privatization of the Naga plant can still be achieved within the year. PSALM will proceed with the second round of bidding soonest,” Ledesma said.

Industry sources earlier said Consunji-led DMCI Holdings Inc., the Aboitiz Group, D.M. Wenceslao (construction firm) and current Naga complex operator SPC Power Corp. (via operations and maintenance agreement with PSALM) had expressed interest in the facility, having joined the pre-bid conference.

Located in Barangay (village) Colon, Naga City, Cebu province, the NPPC comprises two thermal power plants and one diesel power plant that use a combination of coal, bunker C oil and diesel as fuel.

These power plants are: the 52.5-MW coal-fed Cebu Thermal Power Plant 1, the 56.8-MW Cebu Thermal Power Plant 2 and the 43.8-MW Cebu Diesel Power Plant 1 (consisting of six 7.3 MW diesel-fed power units)

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  • John Fereira

    Natural only the Aboitez, Lopez, SMC, Ayala,SY ang makakapasok sa bidding then they only use SALIVA in the negotiation they tapos na ang usapan sa kanila na ang facilities ng taong bayan.

  • Guest

    The Naga facility may be rebidded “within the year,” Ledesma added. Rebided? What kind of English is that?

  • rudy_boy

    The probable reason.

    PSALM management intend to go for negotiated
    bidding ( sana wag naman mangyari).

    Under RA 9184, after 3 failure biddings the
    Client ( Government ) can proceed with
    negotiated bidding with “qualified” buyer/supplier/Subcontractor. That’s one of the lapses of RA 9184, concern legislators should look closer the gray area of this law, probably amend some of the provisions .COA should evaluate all negotiated biddings done under this method (conspiracy).

    Negotiated bidding should only be allowed
    during emergency crises sought by the
    president and approved by congress.

    • WeAry_Bat

      Then it becomes a win-win situation with client-bidder(s). Who loses, taxpayers?

  • wawa2172

    hmmm…kulang ang commission sa bidding kaya walang qualified? Parang DOTC ha, di maibigay ang $30M kaya na blacklist ang bidder..he he he..kapal. Ano ba naman tong mga appointee mo Noy, may bagong tatag ba na Commission Agency sa admin ngayon?

  • symonwho

    I wonder why bids are either cancelled or deferred. This is one of the reasons why people think this administration is mabagal or indecisive, true or not.
    Could be that the reasons for cancellation or deferment is true and correct. But could be that a favored company is yet to be qualified. Or shakedown for “lagay”.

    I wish this reporter asked the disqualified bidders for their side.

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