Three investor groups keen on participating in IPPA bidding
Manila (18 June) -- Three bidders remain keen on participating in the selection of independent power producer administrators (IPPAs) for the coal-fired Sual and Pagbilao plants.
Acceding to the request of the bidders, the Power Sector Assets and Liabilities Management Corporation (PSALM) moved the Bid Submission Deadline for the IPPA selection to 26 June 2009. The three investor groups have been formally informed of the new bidding schedule.
In setting the bidding date, PSALM also considered the complexity of the IPPA selection process which it described as the first of its kind and, thus, has no precedent in any jurisdiction.
The winning IPPAs will manage the contracted capacities of the National Power Corporation in the Sual and Pagbilao power plants, which are 1,000 megawatts (MW) and 700 MW, respectively. Both power facilities are being operated by Team Energy under a build-operate-transfer agreement.
The 1,700-MW aggregate contracted capacities of the two power plants represent around 34.7% of the contracted capacity of the IPP contracts for Luzon and the Visayas. This is 35.3 percentage points short of the 70% requirement to privatize the contracted capacities under the IPP contracts to meet the last precondition for open access and retail competition as stipulated in the Electric Power Industry Reform Act.
PSALM emphasized that a bidder could only win one IPP contract to check concerns regarding market dominance. (PIA) [top]