9 groups vie for Mt. Apo power deals

Nine investor groups have expressed interest in bidding for the bulk energy contracts of Mt. Apo 1 & 2 geothermal power plants in Mindanao, which are up for privatization, Power Sector Assets and Liabilities Management (PSALM) Corp. said in a statement over the weekend.

“The selection and appointment of the independent power producer administrator (IPPA) for the output of the Mindanao I and II (Mt. Apo 1 and 2) Geothermal Power Plants has drawn the interest of nine investor groups,” PSALM president and CEO Emmanuel R. Ledesma Jr. said.

PSALM said that 10 investor groups initially submitted letters of interest.

Of the 10, nine firms managed to comply with the initial requirements.

The companies are: EDC Mindanao Geothermal Inc.; FDC Misamis Power Corp.; GDF SUEZ Energy Philippines Inc.; Good Friends Hydro Resources Corp.; SMC Global Power Holdings Corp.; SPC Power Corp.; Therma Southern Mindanao Inc.; Trans-Asia Oil and Energy Development Corp.; and Vivant Geo Power Corp.

Bidders must submit their respective proposals by noon of Sept. 24. Later, the bids will be opened and evaluated.

PSALM will hold the pre-bid conference for the Mt. Apo 1 and 2 IPPA on June 26, 2 p.m. at the PSALM office on Ayala Avenue, Makati City.

The bidding exercise is PSALM’s first IPPA auction in Mindanao.

The Mt. Apo IPPA will manage the government’s contracted output from the Mt. Apo 1 and 2 plants, which are 390 gigawatt-hours (GWh) and 398 GWh a year, respectively.

The Mt. Apo 1 and Mt. Apo 2 geothermal power plants each have a rated capacity of 54.24 MW. They are located in Kidapawan City, North Cotabato.

Owned and operated by the Energy Development Corp., the power plants were commissioned on Feb. 15 ,1997 (Mt. Apo 1) and June 17, 1999 (Mt. Apo 2) under a build, operate, and own contract scheme.

The cooperation period for both plants is 25 years. The contract for Mt. Apo 1 will expire in February 2022, while that of Mt. Apo 2 will lapse in June 2024.