Eight companies have formalized their intentions to bid for the independent power producer administrator (IPPA) contract of the 146-megawatt Naga power plant complex in Cebu, according to state-run Power Sector Assets and Liabilities Management Corp. (PSALM).
PSALM president and CEO Emmanuel R. Ledesma Jr. said in a statement that these eight prospective bidders, which have submitted letters of intent, were a mix of new and old participants in the power industry, some of which have participated and won in previous bidding exercises.
The Naga IPPA contract is considered a lucrative investment since it is considered a “a low-cost, low-risk technique of entering the Visayas electricity market.” As such, a number of private entities that intend to enter or expand their investments in the power industry are interested in this power asset, Ledesma explained.
Although PSALM did not reveal the identities of the bidders, earlier reports showed that two of the biggest power industry players in the country, San Miguel Corp. and Aboitiz Power Corp., were interested to join the bidding.
During the pre-bid conference held last week, PSALM also sought comments from the prospective bidders regarding the proposed legal and commercial structures of the transaction.