PSALM seeks bids for Angat hydro plant

The Power Sector and Assets Liabilities Management Corp. (PSALM) is starting this year's privatization program by putting the 246-megawatt Angat hydroelectric plant on the auction block. PSALM, the state body mandated to privatize the National Power Corp.'s power plants and manage its liabilities, released on Monday an invitation to bid for the Angat facility. "We hope to see a successful bid. Angat is a good asset," Conrad S. Tolentino, the acting vice-president of PSALM's asset management and electricity trading, said in a text message. PSALM has set a Jan. 27 deadline for the submission of letters of interest. Bidders have up to Jan. 29 to pay a $2,500 nonrefundable participation fee. Due diligence starts on Jan. 12, while a pre-bid conference is scheduled for Feb. 17. The bid submission deadline is April 28. Qualified firms must post a $4-million bond. As in previous bid exercises, PSALM will adopt a two-envelope system. The one containing the technical qualifications will be opened first, followed by the one containing the financial bid. PSALM's Privatization, Bids and Awards Committee will handle the bid evaluation. Privatizing at least 70 percent of the state's generating assets is one requirement under the Electric Power Reform Act of 2001 to usher in open access and retail competition. PSALM reached the target in July last year after the sale of the 600-MW Calaca coal-fired plant to DMCI Holdings, Inc. The sale of at least 70 percent of the state's independent power producer contracts, another precondition, has yet to be met. — Jose Bimbo F. Santos