2 investor groups eye Naga plant

ABS-CBN News

Posted at Feb 13 2009 08:52 PM | Updated as of Feb 14 2009 04:52 AM

Two investor groups are expected to bid for the 55-megawatt Naga land-based gas turbine power plant located at the Cebu I Power Plant Complex in Barrio Colon in Naga town, Cebu, the Power Sector Assets and Liabilities Management Corp. (PSALM) said Friday.

PSALM said the two groups, which are both Filipino-owned corporations, have attended the pre-bid conference for the Naga power facility last Thursday.

"The two groups remain keen on acquiring the power asset as evidenced by their attendance in the Pre-bid Conference that PSALM conducted last Feb. 12, 2009," PSALM said.

An integral part of PSALM's bidding process, the pre-bid conference allowed the prospective bidders to clarify issues and concerns pertinent to the sale of the Naga power facility. The discussions also covered the asset management firm's bidding procedures.

PSALM said the interested parties are currently undertaking due diligence on the Naga power plant, which is scheduled to be auctioned off on April 22.

The said power complex houses a number of thermal and diesel power plants with a total capacity of 203.80 megawatts. The plant, owned by the National Power Corp. (Napocor), was previously run by Salcon Power Corp., whose contract already expired last year.

Under the Electric Power Industry Reform Act of 2001, PSALM is tasked to privatize at least 70 percent of the Napocor's power plants and contracted capacities in the Luzon and Visayas grid before open access and retail competition can commence in the power sector.

Open access allows consumers--starting off with bulk users--to choose the supplier of their electricity requirements.