Big players competing for Angat hydro plant
01/28/2010 | 10:29 AM
At least five companies have expressed interest to participate in the bidding for the 246-megawatt (MW) Angat hydroelectric plant, according to the Power Sector Assets and Liabilities Management Corp. (PSALM).
Conrad S. Tolentino, acting vice-president-in-charge of the PSALM's asset management and electricity trading, declined to give a specific number, saying the applications have yet to be counted after the 5 p.m. deadline for letters of interest (LOI) on Wednesday.
"When there are this many companies who participate we consider it as a positive turnout," Tolentino said in a phone interview.
San Miguel Corp. confirmed its participation. "Yes, we'll join," San Miguel President Ramon S. Ang said in a text message.
The diversifying food and beverage conglomerate has been training its sights on the power sector despite initial setbacks such as losing in the auction for the national power transmission grid two years ago.
San Miguel won the 620-MW Limay Combined Cycle Power Plant in Bataan and the contract to manage the Sual plant in Pangasinan in August. It bagged the San Roque hydropower plant last December.
San Miguel is a major shareholder of Manila Electric Co., the country's largest power utility.
Listed Aboitiz Power Corp., a top player in the hydropower sector, is also joining the bidding.
"Yes. We sent a letter of intent for Angat," Luis Miguel O. Aboitiz, senior vice-president of Aboitiz Power, said in a text message.
First Gen Holdings Corp., the power generation arm of the Lopezes, earlier expressed intention to join the bid for Angat.
Submission of the letter of intent for the Angat bidding requires payment of the $2,500 nonrefundable participation fee, which will entitle a party to receive the bidding package.
The due diligence period was scheduled last January 12, while the pre-bid conference is slated on February 17. The bid submission deadline is on April 28.
Qualified bidders must also post a $4-million bid security.
As in previous auctions, the PSALM will adopt a two-envelope bidding system for Angat dam. The envelope containing technical qualifications will be opened first, followed by the envelope containing the financial bid.
The PSALM's privatization, bids and awards committee will evaluate the bids.
Privatizing at least 70 percent of the government's generating assets is a requirement under the Electric Power Industry Reform Act of 2001 to usher in open access and retail competition in the energy sector.
The PSALM reached the 70 percent target in July last year after the sale of the 600-MW Calaca coal-fired plant to DMCI Holdings, Inc.
The transfer of management and control of at least 70 percent of the state's power supply contracts with private generators, another precondition for open access, is yet to be met.
The privatization level stands at 44 percent. Jose Bimbo F. Santos, BusinessWorld
Conrad S. Tolentino, acting vice-president-in-charge of the PSALM's asset management and electricity trading, declined to give a specific number, saying the applications have yet to be counted after the 5 p.m. deadline for letters of interest (LOI) on Wednesday.
"When there are this many companies who participate we consider it as a positive turnout," Tolentino said in a phone interview.
San Miguel Corp. confirmed its participation. "Yes, we'll join," San Miguel President Ramon S. Ang said in a text message.
The diversifying food and beverage conglomerate has been training its sights on the power sector despite initial setbacks such as losing in the auction for the national power transmission grid two years ago.
San Miguel won the 620-MW Limay Combined Cycle Power Plant in Bataan and the contract to manage the Sual plant in Pangasinan in August. It bagged the San Roque hydropower plant last December.
San Miguel is a major shareholder of Manila Electric Co., the country's largest power utility.
Listed Aboitiz Power Corp., a top player in the hydropower sector, is also joining the bidding.
"Yes. We sent a letter of intent for Angat," Luis Miguel O. Aboitiz, senior vice-president of Aboitiz Power, said in a text message.
First Gen Holdings Corp., the power generation arm of the Lopezes, earlier expressed intention to join the bid for Angat.
Submission of the letter of intent for the Angat bidding requires payment of the $2,500 nonrefundable participation fee, which will entitle a party to receive the bidding package.
The due diligence period was scheduled last January 12, while the pre-bid conference is slated on February 17. The bid submission deadline is on April 28.
Qualified bidders must also post a $4-million bid security.
As in previous auctions, the PSALM will adopt a two-envelope bidding system for Angat dam. The envelope containing technical qualifications will be opened first, followed by the envelope containing the financial bid.
The PSALM's privatization, bids and awards committee will evaluate the bids.
Privatizing at least 70 percent of the government's generating assets is a requirement under the Electric Power Industry Reform Act of 2001 to usher in open access and retail competition in the energy sector.
The PSALM reached the 70 percent target in July last year after the sale of the 600-MW Calaca coal-fired plant to DMCI Holdings, Inc.
The transfer of management and control of at least 70 percent of the state's power supply contracts with private generators, another precondition for open access, is yet to be met.
The privatization level stands at 44 percent. Jose Bimbo F. Santos, BusinessWorld
