Bidding for selection of IPPAs fails as reserve price unmet
Manila (26 June) -- The bidding for the appointment of independent power producer administrators (IPPAs) to manage the contracted capacities of the National Power Corporation in the coal-fired Sual and Pagbilao power plants hit a bump as the two participating parties failed to meet the reserve price set by the Board of the Power Sector Assets and Liabilities Management Corporation (PSALM).
In the first bidding exercise for the selection of IPPAs conducted by PSALM today, the two participating bidders - San Miguel Energy Corporation (SMEC) and Therma Luzon Inc. - both passed the technical and financial requirements set by PSALM's Bids and Awards Committee (BAC).
Their offers for the contracted capacities of the Sual and Pagbilao power plants, however, came up short of the reserve price which the BAC did not disclose.
Despite the setback, PSALM remains confident that IPPAs will be appointed before the year ends as it begins preparations for a new round of bidding.
PSALM is also set to implement Phase II of its IPPA selection process, which will involve the IPP contracts of the Casecnan, Bakun, and San Roque hydropower plants. The contracted capacities of these power facilities are 140 MW, 70 MW, and 95 MW, respectively. (PSALM/PIA-MMIO) [top]