Ayala, MPIC to jointly bid for Angat hydro plant

Ayala Corp. and Metro Pacific Investments Corp. (MPIC) will jointly bid for the 246-megawatt (MW) Angat hydroelectric plant in Bulacan, the companies separately told the Philippine Stock Exchange (PSE) on Thursday. The firms said they would bid for the state asset through Michigan Power, Inc., an Ayala Corp. unit that had submitted a letter of interest to the Power Sector Assets and Liabilities Management Corp. (PSALM). The state corporation earlier said at least five companies had expressed interest to participate in the bidding for the power plan. Among the firms that have confirmed participation in the bidding are San Miguel Corp., which is a major shareholder of Manila Electric Co.; Aboitiz Power Corp., a major player in the hydropower sector; and First Gen Holdings Corp., the power generation arm of the Lopez family. 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. 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. — GMANews.TV