State-run Power Sector Assets and Liabilities Management (PSALM) Corp. is bidding out anew the 153-megawatt Naga power complex in Cebu, following a failed attempt to dispose of the facility in July.
In a notice, PSALM said the submission and opening of offers from prospective investors was set for Oct. 15. A prebid conference will be held on Sept. 12 to give interested parties the opportunity to clarify concerns about the bidding process.
According to PSALM, companies can start conducting due diligence on the facility upon payment of a nonrefundable participating fee of P120,000. Due diligence should end on or before Sept. 6.
This is the second time this year that PSALM will be bidding out the facility. The first, which was held in July, was declared a failure due to “lack of qualified bidders for the asset.”
PSALM president and CEO Emmanuel R. Ledesma Jr. earlier said only one of the groups that submitted “documentary deliverables” was prequalified. Since only one was found to have completed the required documentary submissions, the bidding was declared a failure.
Prior to the July bidding, PSALM said there were five investor groups that had expressed interest in the Naga plant. These were D.M. Wenceslao and Associates Inc.; DMCI Power Corp.; PowerOne Ventures Energy Inc.; Quezon Power (Philippines) Ltd. Co. and SPC Power.
Located in Colon, Naga City in Cebu, the Naga Power Plant is composed of two thermal power plants and one diesel-fired power plant that use a combination of diesel, bunker C oil and coal as fuel. These are the 52.5-MW Cebu 1 and 56.8-MW Cebu 2 coal-fired thermal power plants, and the 43.8-MW Cebu Diesel Power Plant 1, which is composed of six 7.3-MW bunker-C-fed units.