PSALM eyes O&M deal for Naga plant

State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is seeking offers to operate and maintain the 146-megawatt Naga power complex in Cebu while it awaits the decision of the Joint Congressional Power Commission (JCPC) on whether or not the contracted capacity of the asset will be privatized.

According to PSALM, it will bid out a one-year P172-million operation and maintenance service contract for the Naga facility on February 27. A pre-bid conference will be held on February 14 for interested companies.

PSALM explained that the bidding will still be conducted through an open competitive bidding procedure using a non-discretionary “pass/fail” criterion as specified in the law. Bidding documents will be made available upon the payment of a non-refundable fee of P50,000.

To recall, PSALM had indefinitely postponed the bidding for the independent power producer administrator (IPPA) contract for the Naga complex last year, after its board of directors decided to grant the request of the JCPC.

The JCPC had said it wanted to conduct further review on the allegedly unfair and illegal condition in the bidding documents, known as the “right to top the highest bid,” which was granted to SPC Power Corp. through a land lease agreement executed by and among PSALM, National Power Corp. and SPC in 2009.

This condition meant that SPC has the right to top by 5 percent the highest bid price offered by interested parties for the IPPA contract, only if it was interested to acquire the management of the contracted capacity of the Naga power complex.

“The PSALM board deemed it prudent to defer the bidding and to address all concerns in the interest of transparency and propriety,” PSALM president Emmanuel Ledesma Jr. earlier said.