PSALM offers P722-M coal delivery contract

State-run Power Sector Assets and Liabilities Management Corp. is seeking offers from the private sector to supply and deliver $16.8 million (roughly P722 million) worth of steaming coal for the 146-megawatt Naga power complex in Cebu.

In a statement Wednesday, PSALM said that the amount covers the Naga facility’s requirement of 104,000 metric tons of coal.

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

PSALM will hold a pre-bid conference on Feb. 21, while the deadline for the submission of offers was scheduled for March 6.

As successor owner to the state-run National Power Corp., PSALM is mandated 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 week that PSALM has begun seeking offers from parties who would want to operate and maintain the Naga in Cebu, as it is still waiting for the decision of the Joint Congressional Power Commission (JCPC) on whether the contracted capacity of the asset will be privatized.

It was also in anticipation of the expiration of the rehabilitate-operate-maintain-and-manage agreement between Napocor and Salcon Power Corp. on March 25 this year.

PSALM will bid out a one-year P172-million operation and maintenance service contract for the Naga facility on Feb. 27. A pre-bid conference was held last Tuesday.