The Power Assets and Liabilities Management Corp. (PSALM) will reopen next month its bidding process for the 650 MW Malaya thermal plant in Pililla, Rizal.
“PSALM Privatization, Bids and Awards Committee invites interested parties to participate and bid for the privatization of the 650-MW Malaya thermal power plant and the land underlying the plant on an ‘as is, where is’ basis,” the state firm was quoted in a BusinessMirror report.
Interested bidders can submit their proposals until November 22, 12 noon.
“A two-envelope bidding system will be adopted. Interested parties must post a bid security worth P310 million in the form of irrevocable letter of credit,” it said.
Participants have until November 6 to submit their letters of interest (LOI) to PSALM and pay a participation fee of P150,000. Only those who submitted LOI will be allowed to join the bidding.
Under PSALM’s Bidding Procedures, if there’s only one bid that has been received, it shall be declared a failure of bidding.
The lone bidder last September was AC Energy Inc.
“While it is unfortunate that the bidding failed, PSALM remains very much committed to privatize the Malaya Power Plant this year. Failure of the first round of bidding will not deter us from trying again, and again, until we are able to successfully dispose of this asset,” PSALM President Irene Joy Garcia told BusinessMirror reporters.
A total of 11 companies submitted their LOI to PSALM. However, only four were declared as qualified to bid.
Earlier, PSALM partnered with a third-party consultant, PricewaterhouseCoopers Philippines, to conduct a valuation of the Malaya plant, structures and underlying land. This was among the factors considered by the PSALM Board in putting the reserve bid price.
PSALM was supposed to bid out the thermal plant in 2017 but was put on hold by the Department of Energy (DOE) as Malaya was being planned to be converted into a liquefied natural gas facility, which did not push through.