PSALM selects 7 bidders to 2 Mount Apo geothermal plants

by Lenie Lectura, BusinessMirror

Posted at Sep 24 2014 09:35 AM | Updated as of Sep 24 2014 05:35 PM

MANILA, Philippines - The Power Sector Assets and Liabilities Management (PSALM) Corp. has prequalified seven interested bidders for the selection and appointment of the independent power producer administrator (Ippa) for the output of the Mindanao I and II (Mount Apo 1 and 2) geothermal power plants.

“Based on the evaluation conducted by PSALM of the Documentary Deliverables that it received from the prospective bidders, and as approved by the Privatization, Bids and Awards Committee, only seven investor groups have qualified to participate in the Mount Apo 1 and 2 Ippa auction scheduled on September 24,” said PSALM President and CEO Emmanuel R. Ledesma Jr. said on Tuesday.

The groups that have qualified for the bidding are EDC Mindanao Geothermal Inc.; FDC Misamis Power Corp.; GDF Suez Energy Philippines Inc.; SMC Global Power Holdings Corp.; Therma Southern Mindanao Inc.; Trans-Asia Oil and Energy Development Corp.; and Vivant Geo Power Corp.

Ledesma said the prequalified bidders have been issued with the final Ippa Administration Agreement for the Mount Apo 1 and 2.

The seven groups have until September 24 to submit their bids, with the opening and evaluation of bids ensuing thereafter.

The bidding exercise is PSALM’s first Ippa auction in the Mindanao region.

The Ippa will manage output of Mount Apo 1 and 2 plants.

The Mount Apo 1 and Mt. Apo 2 geothermal power plants have a rated capacity of 54.24 megawatts (MW) each, and are in Kidapawan City, North Cotabato.

Owned and operated by the Energy Development Corp., the power plants were commissioned on February 15, 1997 (Mount Apo 1) and June 17, 1999 (Mount Apo 2) under a build, operate, and own contract scheme.

The cooperation period for both plants is 25 years, and will expire on February 15, 2022, and June 17, 2024, for Mount Apo 1 and 2, respectively.