Monday, September 22, 2008 Psalm sets Limay plant auction
THE Power Sector Assets and Liabilities Management Corporation (Psalm) has decided to bid out the 620-megawatt (MW) Limay Combined Cycle Power Plant next year.
But the government privatization arm hopes to finally choose the winning bidder during the invitation to bid (ITB). The pre-bid conference meanwhile is scheduled on October 17, 2008.
Psalm president Jose C. Ibazeta said they are hopeful that the Bataan-based power asset would finally be privatized on the slated January 14, 2009 bidding.
The ITB also requires interested parties to submit a Letter of Interest not later than 5 p.m. of October 7, 2008.
To recall, the Psalm Board declared the initial sale of the 620-MW Limay power facility a failure last July 30, 2008 after it was left with only one interested bidder who submitted the Documentary Deliverables before the deadline.
Ibazeta added that they are not attaching any power supply contract with the Limay plant since it operates as a peaking plant, which means the winning bidder will trade the plant's power output through the Wholesale Electricity Spot Market (WESM).
"Psalm is selling the Limay plant on an as is, where is basis, but the new owner has the option to convert the facility into a base-load plant by turning it into a natural gas-fired power plant," added Ibazeta.
Based on the bidding rules, the bidding for a power plant is considered failed if there is only one participant in the exercise.
Interested investor groups are also required to execute a Confidentiality Agreement and Undertaking with Psalm and to pay a non-refundable amount of USD2,000 as their participation fee.
The deadline for submission of these preliminary requirements is on October 8, 2008, while the Due Diligence period will be held from September 22, 2008 to January 12, 2009.
Commissioned in 1993, the Limay power plant comprises two 310-MW modules, Blocks A and B, which consist of three 70-MW gas turbines and a 100-MW steam turbine, respectively.
Located in Limay, Bataan in Central Luzon, or approximately 145 kilometers west of Manila, the plant is designed to meet the base-load demand of the Luzon grid.
A combined-cycle power plant such as the Limay plant generates electricity in two ways: A combination of bunker and diesel fuel is primarily used to power its gas turbines.
To improve fuel efficiency, the plant utilizes the heat of exhaust gas from the gas turbines to boil water inside the boiler that produces steam that will drive the steam turbines. (MSN/Sunnex)
