Limay plant attracts 7 investor groups

ABS-CBN News

Posted at Jun 02 2008 05:55 PM | Updated as of Jun 03 2008 01:55 AM


At least seven groups have expressed interest to bid for the 620-megawatt Limay combined cycle power plant, indicating the continued support of investors to the government's privatization efforts, an industry official said.

Froilan Tampinco, vice-president of the Power Sector Assets and Liabilities Management Corp. (PSALM), said about seven prospective bidders submitted their letters of interest. He declined, however, to name them.

But industry sources said the interested groups include AES Corp., Alstom, Marubeni Corp. and Western Power Co., a subsidiary of Korea Electric and Power Co.

Last May 21, PSALM issued invitation to bid, with the deadline for submission of the letters of interest set on May 30.

The due diligence period will be held from May 21 to July 28. The pre-bid conference for qualified participants is scheduled on June 4.

PSALM has set July 30 as the bid date for the Central Luzon-based power asset.

Commissioned in 1993, the Limay combined-cycle power plant comprises two 310-MW modules, blocks A and B, which consist of three 70-MW gas turbines and a 120-MW steam turbine, respectively.

The facility is located in the province of Bataan and is designed to meet the base-load demand of the Luzon grid.

Last year, PSALM was able to raise some $1.9 billion from the sale of about 42 percent of the generating assets of the National Power Corp. (Napocor).

These include the 600MW Masinloc coal-fired power plant in Zambales worth $900 million, 600-MW Calaca coal-fired power plant in Batangas worth $700 million, and the Ambuklao-Binga hydroelectric plants in Benguet worth $300 million.

PSALM is hoping to reach the 70-percent privatization target by the end of 2008.