PSALM seeks coal suppliers for 146-MW power complex in Cebu

MANILA, Philippines—State-run Power Sector Assets and Liabilities Management Corp. is seeking offers for the supply and delivery of P119.5 million worth of local coal to be used for the 146-megawatt Naga power complex in Cebu.

The budget allocated by PSALM will be used to purchase 25,000 metric tons (MT) of local coal to fuel the Naga facility.

Based on its notice, PSALM said a pre-bid conference would be held on Oct. 30 while the bidding proper is scheduled on November 13.

PSALM is still managing the Naga power complex. It has yet to auction off the facility to private investors.

Currently, PSALM is offering anew a P319-million contract to operate and maintain the Naga power complex. The deadline of bid submissions is on November 20.

This is the third time PSALM will be offering to the private sector a one-year operation and maintenance contract for the Naga power plant. Two previous bids in February and June this year had been declared failures.

Currently, SPC Power Corp. is in charge of the operation and maintenance of the Naga power plant. Its six-month contract was supposed to have expired last September 25, but was extended again by another three months to December this year while a full contract is being procured.

Prior to that, state-run National Power Corp. and SPC Power had entered into rehabilitate-operate-maintain-and-manage (ROMM) agreement, which already expired in March 25 this year, prompting the need to look for another operator of the facility to head off any potential operational disruptions.

The Naga complex consists of three thermal power plants that use a combination of diesel, bunker oil and coal as fuel. These are the coal-fired 50-MW Cebu thermal power plant 1 and 56.8-MW Cebu thermal power plant 2; and the 39-MW Cebu diesel power plant 1.—Amy R. Remo