Baguio readies Asin bid-A A +A
Tuesday, February 25, 2014
THE Special Bids and Awards Committee (SBAC) is completing the requirements to contract out the rehabilitation and operation of the mini-hydroelectric plants in Nangalisan, Tuba, Benguet.
City Budget officer Leticia Clemente, head of the SBAC, told the City Council they are in the final leg of qualifying the lone company which passed the bidding requirements for the project and will be recommended for approval to Mayor Mauricio Domogan allowing the award of the contract to the winning bidder by the first week of March.
The company, Caltimex Energy, qualified during the bidding held October last year after the city received offers from three other firms.
Clemente said Caltimex passed the technical eligibility as per evaluation done by the Asin Hydro Power Plant technical working group (TWG). It also hurdled the financial requirements and is now being evaluated for other final requisites.
The October bidding was the fourth conducted by the city for the project. The first three biddings conducted in January and June in 2012 and in June 2013 failed due to the disqualification of the companies which tendered offers.
Clemente said once the mayor approves the award, a contract will be forged between the city and the company and will be submitted to the City Council for confirmation. Once confirmed, the contract will then be enforced.
Clemente said under the approved terms of the project, the city expects an annual income of P18 million or 30 percent of the gross earnings, whichever is higher.
However, Vice Mayor Daniel Fariñas cautioned the SBAC to make sure the issues involving the hydros have been addressed prior to the implementation of the project and to ensure the contract contains ample provisions to protect the city’s interest in the event of default by the company.
The project entitled “Privatization of the Operation and Management of Asin Mini-Hydro Power Plants” has an approved contract budget of P500,000,000.
Based on the terms of reference, the bid components will be for the rehabilitation and rental under the conditions the operator will invest a considerable amount of money for the rehabilitation, upgrading and expansion of the plants to produce 41,406,178 kilowatt-hour, install independent substation and power line to the national grid.
The terms also provided the schedule of remuneration to the city government and other concerned parties including the provincial government of Benguet, municipality of Tuba and barangays Tadiangan and Nangalisan where the plants are located and including the surface owners whose properties are affected by the pipelines and plant facilities. (Aileen Refuerzo)
Published in the Sun.Star Baguio newspaper on February 26, 2014.