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PSALM bidding out coal supply deal for Naga complex

State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has again started seeking offers from the private sector for the supply and delivery of $16.8 million (about P722 million) worth of steaming coal for the 146-megawatt Naga power complex in Cebu.

PSALM vice president for asset management Conrad S. Tolentino said in a text message to the Inquirer that the scheduled bidding for the Naga coal supply on March 6 failed.

He said none of the interested parties were able to comply with the bidding rules.

Data from PSALM showed that the amount covered the Naga power facility’s coal requirements of 104,000 metric tons.

To qualify, interested bidders should have completed a contract similar to the planned procurement within five years from the date of submission. Prospective parties are also required to pay a nonrefundable participation fee of P100,000 which covered the purchase of bidding documents.

PSALM will hold a pre bidding conference on April 10, while the deadline for the submission of offers was slated for April 24.

PSALM is mandated by law to procure the fuel requirements of all government owned power facilities and contracted capacities, while awaiting their privatization—as in the case of the Naga power complex.

It was only last month that the PSALM board had accepted the offer of SPC Power Corp. for the continued operation and maintenance of the Naga power plant complex under a negotiated bidding.

SPC had offered PSALM P149 million for the six-month operation and maintenance service contract (OMSC).

According to SPC, PSALM, in a letter dated March 22, had requested the company “to continue with the operation and maintenance of the Naga power plant complex, pending the execution of the six-month OMSC between the two companies.”

In a separate text message, PSALM president and CEO Emmanuel R. Ledesma Jr. confirmed the said agreement, noting that this was needed while the government was preparing for the second round of bidding for a longer OMSC.—Amy R. Remo


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