State-run Power Sector Assets and Liabilities Management Corporation (PSALM) names three prospective bidders of the 650 MW Malaya thermal power facility.
The interested investors are AC Energy, Inc. of the Ayala group; Panasia Energy, Inc. and Denki Power, which all expressed intent to join the bidding on April 15, 2020, according to a Manila Bulletin report.
Last February 13, PSALM conducted its pre-bid conference to allow bidders raise concerns and questions relating to the privatization package of the Malaya plant.
The facility’s privatization includes its underlying site, which some bidders consider to have a better value to them.
Bidders have implied that the land could be used for another power project development, especially for solar installations.
Interested parties are reportedly leaning more on what the site could offer as some bidders have mentioned that the plant’s value is almost of “scrap worth.”
This pushed PSALM to decrease the previous P.4481-billion reserve price.
The Malaya thermal plant is one of the plants that the Luzon grid has been relying on for additional capacity in case of supply tightness.
However, the Department of Energy (DOE) said that after the plant’s privatization it will no longer be a “must-run unit” (MRU). Its use shall be left to the hands of the buyer.
Currently, Malaya plant is the only asset being placed in the auction block by PSALM as it still reviews the privatization options of its other facilities.