PSALM to bid out fuel supply deals worth P1.4B

MANILA, Philippines—State-run Power Sector Assets and Liabilities Management Corp. is seeking offers for the supply and delivery of P1.4 billion worth of steaming coal and industrial fuel.

The move is aimed at ensuring adequate fuel supply for two power generation facilities in the Visayas and Mindanao.

In separate notices, PSALM said it needed P1.012 billion worth of industrial fuel oil for the 55-megawatt bunker-C fired power station of Southern Philippines Power Corp. (SPPC) in Sarangani and $8.4 million (about P350 million) worth of steaming coal for the 146-MW Naga power complex in Cebu.

The budget allocated by PSALM would be enough to cover the delivery of 29 million liters of industrial fuel oil and 64,000 metric tons of steaming coal, which will be needed by the said plants this year.

PSALM will offer the contracts through open competitive bidding using a non-discretionary “pass or fail” criterion as specified in the Implementing Rules and Regulations as amended (IRR-A) of the Government Procurement Reform Act.

The bidding is, however, open only to Filipino citizens or sole proprietorships, organizations with at least 60 percent interest or outstanding capital stock belonging to Filipino citizens, and to citizens or organizations of a country whose laws and regulations grant similar rights or privileges to Filipino citizens.

The prebidding conferences for both contracts will be held on October 18, while the deadline for the submission of bids will be on October 30, according to PSALM.

PSALM manages and conducts the bidding for fuel procurement, as it had taken over from National Power Corp. the management of all government-owned power plants and contracted capacities.

SPPC and the Naga power facility are among the independent power producers (IPPs) that are still being managed by the government.