LOPEZ-LED GREEN CORE GEOTHERMAL Inc. has submitted the highest bid of $220 million for the 192.5-megawatt (MW) Palinpinon and 112.5-MW Tongonan geothermal power plants, according to Power Sector Assets and Liabilities Management Corp.
In the bidding held yesterday, Green Core?s bid edged out the $200 million offer submitted by Therma Power Visayas Inc., a unit of the Aboitiz group.
Green Core?s offer met the reserve price set by PSALM, said its spokesperson Conrad Tolentino.
The highest bidder is a wholly owned subsidiary of First Luzon Geothermal Energy Corp. which, in turn, is wholly owned by Energy Development Corp.
As required under the bidding procedures, PSALM has to first verify the accuracy, authenticity and completeness of the bid documents submitted by Green Core before a winning bidder for the Palinpinon-Tongonan package is formally declared.
Located in Valencia, Negros Oriental, the Palinpinon geothermal power plant consists of two power stations?Palinpinon I and II?which are approximately 5 kilometers apart.
Palinpinon I, which was commissioned in 1983, consists of three 37.5-MW steam turbines for a total rated capacity of 112.5 MW.
Palinpinon II includes three modular power plants: Nasuji, Okoy 5 and Sogongon. The 20-MW Nasuji was commissioned in 1993, while the 20-MW Okoy 5 was commissioned in 1994. Sogongon, which consists of the 20-MW Sogongon 1 and 20-MW Sogongon 2, was commissioned in 1995.
The Palinpinon plant was previously packaged with the 146.5-MW Panay diesel power plant on Sept. 7, 2007. But since the long-term steam supply agreement to be attached to the Palinpinon plant still had to be approved by the Joint Congressional Power Commission, then the PSALM board decided to move the sale of the geothermal asset to 2009.
Located in Sitio Sambaloran, Barangay Lim-Ao, Kananga, Leyte, the Tongonan geothermal power plant consists of three 37.5-MW units that were commissioned in 1983.
Both plants use the steam supplied by the EDC.
EDC chief executive officer Paul A. Aquino earlier said the acquisition of the power facilities was crucial to the operations of the company, since it supplies steam to the power plants. It would also allow flexibility in the company?s geothermal operations, Aquino added.
