Bidding for the 192.5-megawatt Palinpinon and 112.5-MW Tongonan geothermal power plants has been set for August 12 this year, the agency tasked with the privatization of government power assets said.
In an invitation to bid, the Power Sector Assets and Liabilities Management Corp. (PSALM) said interested parties have until May 22 to submit their letters of interest to bid for the two facilities.
"Interested parties that submit the LOI must be parties that will participate in the privatization process, submit a bid and enter into the pertinent agreements," PSALM noted.
Earlier, three groups announced their intention to bid for the Palinpinon power plant. These include Energy Development Corp. (EDC) of the Lopez Group, Aboitiz Power Corp. of the Aboitiz family and Trans-Asia Oil and Power Development of the Phinma Group.
Under bidding rules, interested parties have to post a bid security equivalent to $5 million in the form of irrevocable standby letter of credit or wire transfer in lieu of the letter of credit. PSALM said a two-envelope bidding system for the geothermal facilities will be adopted.
The parties are allowed to conduct their respective due diligence activities from May 11 to August 10, afterwhich, a pre-bid conference will be held on June 20.
Located in Barangay Puhagan, Valencia in Negros Oriental, the Palinpinon geothermal facility supplies 18-20 percent of the electricity demand in the Cebu-Negros-Panay-Bohol-Leyte-Samar Grid.
When the plant was commissioned in 1983, it had an installed capacity of 112.5 MW, which was later increased by 80 MW. The Palinpinon plant utilizes steam supplied by EDC.
Last year, PSALM planned to package Palinpinon with the Panay diesel power facility, but the sale was derailed due to some unresolved steam supply contract issues.
On the other hand, the Tongonan geothermal facility is located in Sitio Sambaloran, Barangay Lim-Ao, Kananga, Leyte. The Tongonan facility was commissioned also in 1983 and also uses steam supplied by EDC.