Strategic Power Development Corp. submitted the high bid of US$450 million for the capacity of the 345-MW San Roque multipurpose hydroelectric plant in the Philippines.
Trans-Asia offered US$424 million and Pacifica Inc. bid US$286 million, said Power Sector Assets and Liabilities Management Corp. (Psalm).
In addition to seeking bids for San Roque’s capacity, Psalm sought bids for the capacities of the 70-MW Bakun hydro plant and the 30-MW Benguet hydro plant. Amlan Power Holdings Corp. was the highest bidder for the capacities of both plants, offering US$145.5 million.
All three plants are in Luzon, the largest island in the Philippines.
Luzon Hydro Corp. operates the Bakun plant. Hydro Electric Development Corp. and the Northern Mini-Hydro Corp. operate the Benguet plant.
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San Miguel subsidiary posts highest bid for San Roque IPPA, APHC takes Bakun-Benguet capacity package
Dec. 16, 2009
The Power Sector Assets and Liabilities Management (PSALM) Corporation Tuesday (15 December 2009) successfully bid out the management of the contracted capacities of the San Roque, Bakun, and Benguet hydroelectric power plants as it moved closer to achieving the last precondition to the inception of open access and retail competition in the Philippine power sector.
Strategic Power Devt. Corp. (SPDC), a wholly-owned subsidiary of San Miguel Corporation (SMC), and the Amlan Power Holdings Corporation (APHC) consortium were declared the highest bidders that would administer the contracts of National Power Corporation in the 345-megawatt (MW) San Roque multipurpose hydroelectric power plant, and the packaged 70-MW Bakun and 30-MW Benguet hydro plants as respective independent power producer administrators (IPPAs). Five investor groups participated in the bidding conducted by PSALM at the New World Hotel in Makati City.
SPDC offered USD450 million (USD450,000,399.00) for the contracted capacity of the Pangasinan-based San Roque hydro plant. The APHC, on the other hand, bid USD145 million (USD145,473,518.00) for the Bakun-Benguet capacity package.
SPDC is primarily involved in producing and generating electricity and in supplying and consolidating the electric power demand of end-users. Its business also covers the financing, design, construction, assembly, testing, commissioning, operation, maintenance, rehabilitation, and management of generating plants, substations, and related facilities and equipment.
On 28 August 2009, another SMC affiliate, San Miguel Energy Corporation, (SMEC) bagged the IPPA contract for the 1,000-MW Sual coal-fired power plant. SMEC also won the bidding for the 620-MW Limay Combined Cycle Power Plant.
APHC, a local consortium affiliated with the Sta. Clara Power Corporation, is also a previous winner in PSALM’s bidding exercises. In 2004, Sta. Clara International Corporation won the bidding for the 1.2-MW Loboc hydroelectric power plant located in Bohol. The group has also acquired the 0.8-MW Amlan hydro plant in Negros Oriental through ICS Renewables.
PSALM will verify the accuracy, authenticity, and completeness of the bid documents submitted by SPDC and APHC before issuing a Notice of Award formally declaring the two companies as the winning IPPAs.
As stipulated in Republic Act No.9136, the Electric Power Industry Reform Act, PSALM is required to privatize at least 70% of the government’s generating assets, and at least 70% of the contracted capacities of the IPPs in the Luzon and Visayas grids before open access and retail competition can commence. The government power firm has already met the first precondition and is now well on its way to fulfilling the second requirement.
With its latest success in the IPPA bidding, PSALM has now bid out 43.75 % of its IPP contracts in the Luzon and Visayas grids, or 2,145.75 MW of the total 4,904.55-MW capacity in the area.