Gov’t gets P305.2-M offer for Sucat thermal plant

Riverbend Consolidated Mining Corp., which is into nickel, iron and cobalt exploration and production, yesterday bested two other bidders for the decommissioned 850-megawatt Sucat Thermal Power Plant in Muntinlupa City.

In the bidding yesterday, Riverbend submitted an offer of P305.2 million, much higher than those submitted by the two other bidders: VPD Trading, P201.6 million and G.G. Uy Bonapor Metal Contractor Co., P168 million.

According to Power Sector Assets and Liabilities Management Corp. (Psalm), the decomissioned plant in Muntinlupa City was auctioned off on an “as is where is” basis, with structures, plant equipment, auxiliaries and accessories included in the lot.

Psalm officer in charge Lourdes S. Alzona said in a statement that based on the asset sale provisions, the Philippines-based Riverbend had the obligation to dismantle, clean up and remediate the power plant site.

This “means that the buyer shall return the present site to ground zero [road level] and free and clear of wastes, toxic substances, debris and structures,” Alzona said.

The four-generator Sucat facility operated for 33 years before Units 1 and 4 were decommissioned in January 2000, and Units 2 and 3 in January 2002.

“Psalm’s privatization, bids and awards committee will report the results of the sale to the Psalm board, then subsequently issue a notice of award upon completion of the post-qualification process,” Alzona said.

There were initially six bidders that had expressed interest in participating in the bidding and eventually submitted bidding papers required for the process.

The other three, which did not pass the last hurdle to qualify for the bidding, were United Metro Steel Philippines Corp., Aluminum Recycling Specialist Inc. and Azzions Recycling Solutions Inc.

In March, Alzona said the proceeds from the sale of the Sucat asset would form part of the funds that would be used to settle National Power Corp.’s (Napocor) debts that were assumed by Psalm.

Under Republic Act No. 9136, or the Electric Power Industry Reform Act (Epira), Psalm is mandated to privatize the generating plants of Napocor and manage its liabilities to reduce the universal charge for stranded debts and stranded contract costs, and to cut its financial obligations.