The Manila Electric Company (MERALCO) has chosen the best bid for the 1,200 megawatt (MW) supply in fulfillment of the Competitive Selection Process (CSP).
Yesterday, three bidders who stated their interest in the CSP submitted their respective documents, proposals, and bid prices.
Concurrently, the Bids and Awards Committee for Power Supply Agreements (BAC-PSA) identified South Premiere Power Corporation (SPPC) as the winning bidder, acknowledging their submission of the most competitive offer for MERALCO’s base load requirement. It offered a levelized cost rate of Php 7.0718 per kilowatt-hour (kWh) for the entire 1,200 MW.
Meanwhile, the joint venture of Limay Power Inc. and San Roque Hydropower Inc., operating as separate entities, presented the second-best bid, proposing a rate of Php 7.1006 per kWh for a 150 MW capacity.
For the 210 MW capacity, First Natgas Power Corporation (FNPC) submitted a bid with a rate of Php 8.4489 per kWh. Notably, all offers, except FNPC’s, were below the Php 7.1538 per kWh reserve price established for this Competitive Selection Process (CSP).
With this, the Bids and Awards Committee for Power Supply Agreements (BAC-PSA) will proceed with a post-qualification evaluation. Following this, the committee will present its recommendation to the Board of Directors of MERALCO for approval of the selected supplier before issuing the Notice of Award.
The Power Supply Agreement (PSA), which would span 15 years, would help address MERALCO’s anticipated capacity needs. This includes the 1,000 MW supply previously covered by its PSAs.