Naga power plant bid in jeopardy

Interest in the P319-million contract to operate and maintain the 146-megawatt Naga power complex in Cebu remained lukewarm as only one company has so far expressed interest in it, according to Emmanuel R. Ledesma Jr., president and CEO of the state-run Power Sector Assets and Liabilities Management Corp., or PSALM.

Ledesma confirmed that only one company joined the pre-bidding conference last Wednesday. He did not reveal the identity of the firm.

This will be the third time that PSALM will attempt to offer to the private sector a one-year operation and maintenance contract for the Naga power plant. Two failed bids were conducted in June and February this year.

Currently, SPC Power Corp. is in charge of the operation and maintenance of the Naga power plant.

Its six-month contract was supposed to expire last September 25, but was extended to December due to the failed bids.

Also, the rehabilitate-operate-maintain-and-manage (ROMM) agreement between state-run National Power Corp. and SPC Power expired on March 25. Concerned agencies are now looking for another operator of the facility to head off potential operational disruptions.

The 146-megawatt Naga complex consists of three thermal power plants that use a combination of diesel, bunker oil and coal as fuel.

PSALM was supposed to auction off the independent power producer administrator contract covering the Naga power complex in October 2011. But the agency gave way to the JCPC when it requested PSALM to defer the bid pending a review of the “right to top the highest bid” granted to SPC Power Corp. in 2009.

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