Four bidders qualify for Philippines’ 360-MW Magat auction

The Philippines’ power sector privatization agency said December 6 that four prospective investors have complied with documentary requirements allowing them to bid in the December 14 privatization auction of the 360-MW Magat hydropower plant.

Power Sector Assets and Liabilities Management Corp. (PSALM) released to bidders the final version of the Asset Purchase Agreement and Land Lease Agreement for the sale of the hydropower plant, part of the privatization of dozens of power plants of National Power Corp. (Napocor). (HNN 10/11/06)

The agency said a final Lease Contract and an Operation and Maintenance Agreement with the National Irrigation Administration also would be released as soon as negotiations are completed. The final documents incorporate comments of prospective bidders during a pre-bid conference November 8. Of seven entities attending the conference, four have complied with all documentary deliverables for the auction, PSALM said.

Magat, which was built on the Magat River at a cost of US$83.7 million, started commercial operations in 1983 in Isabela province in the northern Philippines. The largest operating hydro project in the Philippines, it has four 90-MW units commissioned in 1983-1984 at Ramon, Isabella, Luzon.

Magat has room for two-unit expansion

PSALM said the project can accommodate two additional generating units for expansion. The multi-purpose earth-and-rockfill dam is used for irrigation, flood control, and power generation.

The Asset Purchase Agreement requires the winning bidder to deliver at least 40 percent of the purchase price as an initial payment by the closing date. The balance may be paid in 14 semi-annual installments at 12 percent interest.

The winning bidder is required to operate, maintain, and rehabilitate the project in the ordinary course of business, PSALM Vice President Froilan A. Tampinco said.

For information, contact Froilan A. Tampinco, Vice President, Asset Valuation and Disposal, Power Sector Assets and Liabilities Management Corp., 2nd Floor, SGV II Building, Ayala Avenue, Makati City, Philippines; (63) 2-8938202, extension 202; Fax: (63) 2-8403896; E-mail: fatampinco@psalm.gov.ph; Internet: www.psalm.gov.ph.

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