State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has awarded oil majors Petron Corp. and Pilipinas Shell Petroleum Corp. P8.34 billion worth of fuel supply contracts for the second half of the year.
In a statement, PSALM said it issued last week the notices of award to Petron and Shell—both of which will supply the industrial fuel supply requirements of government-owned facilities and contracted capacities in Luzon and Mindanao.
Shell will supply 150,000 kiloliters of industrial fuel oil worth P5.27 billion for the 630-megawatt Malaya thermal power plant in Rizal.
Petron will supply the oil requirements of PSALM’s Mindanao-based power plants, which consist of Power Barge No. 104, Southern Philippines Power Corp. (SPPC) and Western Mindanao Power Corp. (WMPC).
The supply contracts offered by Petron were worth P525 million for the supply of 14,000 kiloliters of industrial fuel oil for PB 104; P933 million for the 26,500-kiloliter oil requirement of SPPC; and P1.62 billion for the 46,500-kiloliter requirement of WMPC.
All the four bids were declared as the lowest calculated and responsive bids (LCRB) following the completion of the bid evaluation and the post qualification process held recently by PSALM.
PSALM now manages and conducts the bidding processes for fuel procurement, having taken over the function from another state agency, the cash-strapped National Power Corp. It also manages all government-owned power plants and is responsible for the privatization of these facilities.