Auction of Malaya power output failed, official says

Wednesday’s auction of Malaya thermal power plant's contracted capacity failed with only a single participant making an offer. Only First Gen Corp. of the Lopez Group submitted a bid, said an official of the Power Sector Assets and Liabilities Management Corp. who asked not to be named, as he was not authorized to speak about the transaction. Two other pre-qualified bidders — Pacifica Inc., led by Michael Romero, and Trans-Asia Oil and Energy Development Corp. — did not make an offer to administer the 650-megawatt plant’s output, the official said. A single participant in an auction constitutes a failed bid, and two failed biddings will warrant a negotiated sale of the asset on the block, according to PSALM’s bidding rules. "We will rebid (Malaya) but no date yet," the official said. PSALM vice president Conrad Tolentino declined to comment. Ernesto Pantangco, First Gen senior vice president, said that the company did submit its bid for Malaya’s contracted capacity. Pantangco said he had no idea why the two other companies that pre-qualified did not make an offer, and that FirstGen would go for it again should PSALM decide to rebid the asset. The model for the independent power producer administrator was a straightforward business arrangement, Pantangco said, adding that Malaya is a good asset. The winning bidder was supposed to sell the electricity produced by Malaya and provide for the plant’s fuel feedstock. Korea Electric Power Corp. operates the Malaya thermal plant. PSALM is the agency managing the privatization of state power assets and obligations of the National Power Corp. —VS, GMANews.TV