San Miguel wins auction for Limay plant
abs-cbnNEWS.com | 08/26/2009 4:02 PM
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To join bid for Sual, Pagbilao plants
MANILA - Diversified conglomerate San Miguel Corp. (SMC) won the auction for the 620-megawatt Limay combined-cycle power plant, and said it will join bidding later this week to buy the output of 2 big coal-fueled plants.
SMC won Wednesday's auction for the sale of the Limay plant after submitting the lone offer of $13.502 million, according to Power Sector Assets and Liabilities Management Corp. (PSALM) President Jose Ibazeta. He said SMC topped the floor price set by PSALM, which was not disclosed.
Earlier, Ibazeta said SMC has dropped its bid for the Limay plant for the 600-megawatt Calaca coal-fired power plant. "San Miguel is no longer in the list of bidders for Limay. I think, they will go for Calaca," he told reporters at the sidelines of the Manila Overseas Press Club Energy Night held last May.
PSALM is selling state power assets as part of a wider program aimed at cutting government-owned National Power Corp.'s heavy debt and making the energy sector more efficient.
Following the Limay plant, PSALM is set to rebid independent power producer contracts of the 700-megawatt Pagbilao and 1,000-megawatt Sual coal plants this Friday.
San Miguel Energy Corp. Director Lubin Nepomuceno said the company is likely to participate in Friday's auction for the 2 power plants. "Yes, I think we will," Nepomuceno told Reuters.
PSALM is holding a second auction for the Sual and Pagbilao electricity contracts after rejecting bids at the first tender in June, saying offers were below the floor price. At that time, San Miguel gave the top bid of $1 billion for the Sual contract and a unit of the Aboitiz group bid $648.9 million for the Pagbilao deal.
Six groups have expressed interest in the Sual and Pagbilao contracts, including San Miguel, said PSALM spokesman Conrad Tolentino. - abs-cbnNEWS.com with Reuters
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