Prospective bidders, including some of the biggest players in the local energy sector, have swarmed the pre-bidding conference for the 588-megawatt Unified Leyte geothermal facilities, said state-run Power Sector Assets and Liabilities Management Corp. in a statement.
PSALM said 10 companies were interested in the independent power producer administrator (IPPA) contract for the “bulk energy,” which was about 348 MW.
These are DMCI Power Corp., Aboitiz Renewables Inc., FDC Utilities Inc. (FDCUI) of the Gotianuns, Global Business Power Corp. of the Metrobank group, Marubeni Corp.; Philippine Associated Smelting and Refining Corp. (Pasar), PowerOne Ventures Energy Inc., Trans-Asia Oil and Energy Development Corp., Unified Leyte Geothermal Energy Inc. ( wholly owned by the Lopezes’ Energy Development Corp.) and Vivant Energy Corp.
PSALM also said 21 entities—including private power firms, industrial corporations and electric cooperatives—were expected to vie for IPPA contracts covering “strips of energy” with capacities ranging from 1 MW to 40 MW.
These were Aboitiz Energy Solutions Inc., AC Energy Holdings Inc., APO Cement Corp., DMCI Power Corp., Emerging Power Resource Holding Corp., FDCUI Global Business Power, Leyte II Electric Cooperative Inc. and Good Friends Hydro Resources Corp.
Also interested in the strips of energy were Lide Management Corp., Lide -Pasar Power Corp.; Marubeni; Negros Occidental Electric Cooperative Inc., Pasar, Philippine Phosphate Fertilizer Corp., PowerOne Ventures Energy Inc., Renagmec Power Corp. Inc., Trans-Asia Oil, Unified Leyte Geothermal Energy, Vivant Energy and Waterfront Airport Hotel and Casino.
“This remarkable turnout of bidders, which includes the biggest players in the industry, indicates not only the private sector’s support for the government’s privatization initiatives, but also the private sector’s recognition of the reforms being undertaken by PSALM to ensure that the auctions are conducted in the most professional and transparent manner,” said PSALM president and CEO Emmanuel R. Ledesma Jr.
“To familiarize themselves with PSALM’s bidding procedures and have a better appreciation of the salient features of this bidding, the prospective bidders attended the pre-bid conferences we held (yesterday),” Ledesma added.
PSALM is bidding out in October the IPPA contracts covering the Unified Leyte geothermal facilities.
IPPAs can win the rights for “strips of energy” ranging from 1 MW up to a maximum of 40 MW. A total of 200 MW, out of the 588MW capacity of the Unified Leyte, will be allocated. PSALM will remain the administrator for 40 MW, representing the so-called “security capacity.”
The IPPA for the bulk energy, meanwhile, will have the right to the capacity in excess of the 240-MW total capacity of the strips.