Local firm submits ‘lowest bid’ for Malaya plant’s O&M contract

By Myrna M. Velasco – Updated May 30, 2018, 10:29 PM
from Manila Bulletin

Local firm Mindoro Grid Corporation has submitted the lowest bid of P227.040 million in the one-year Operation and Maintenance Service Contract (OMSC) that state-run Power Sector Assets and Liabilities Management Corporation (PSALM) has auctioned for the 650-megawatt Malaya thermal power facility.

That offer, once verified at post-qualification process, could be held as the winning bidder in this round of securing the O&M contractor for the government-owned power plant.

Aside from Mindoro Grid, the other group that lodged its tender was South Korean firm Soosan ENS Co. Ltd. with a bid of P258.720 million.

Both financial offers have been below the approved budget cost of P264 million that PSALM had packaged for the deal – hence, they were reportedly rated “passed” in the auction process.

Eight companies have initially shown interest in the transaction, but two have so far advanced until the submission and opening of bids on May 30 this year.

The next phase of the Malaya O&M contract shall cover the period from September this year until August 2019. Currently, it is South Korean firm STX Marine Service Co. Ltd. that is the contract-holder.

According to the parties-in-interest, they shall be notified on the final outcome of the bidding and eventual contract award once PSALM completes its post-verification process of the submitted offers.

Qualified bidders have been required to post bond deposit which is equivalent to 2.0 percent of the approved budget cost – either in cash or cashier’s/manager’s check issued by a universal or commercial bank.

Beyond the yearly shift on its O&M contractor, the Malaya plant is being contemplated upon by government officials as to the prospective terms of its divestment.

In the interim though, studies are still being pushed on the proposal of the Department of Energy (DOE) to have its fuel use shifted to natural gas.

While still on government’s charge, the Malaya plant is depended upon as must-run unit (MRU), or the facility being called for dispatch when there is supply tightness in the grid.