Malaya plant privatization bid entices more investors
By Lenie Lectura – November 14, 2018
from Business Mirror
THE privatization of Malaya Thermal Power Plant (MTPP) has attracted additional investors, according to Power Sector Assets and Liabilities Management (Psalm) Corp. President Irene Joy B. Garcia.
“For Malaya, we now have 10 registered bidders because of the addition of Phinma Energy Corp., STX Marine Service Co. Ltd, AC Energy Inc. and SMC Global,” Garcia said.
The other six interested bidders are Panasia Energy Inc., Quezon Power (Philippines) Ltd. Co., Crown Investment Holdings Inc., Energy World Power Operations Philippines Inc., Pan Pacific Renewable Power Philippines Corp. and FGEN Reliable Energy Holdings Inc.
These companies participated in a prebid conference for the privatization of MTPP and the land underlying the facility and all other assets associated with the plant’s structures.
Held on October 17 in Psalm’s new office at Vertis North Corporate Center 1, the conference clarified to interested bidders the process and provisions for the sale of the Malaya assets.
Psalm has set on December 14 the bidding for the privatization of the 650-megawatt (MW) MTPP, including the land underlying the facility, located at Barangay Malaya, Pililla, Rizal.
The state firm will accept letters of interest from interested parties until November 19. Only interested parties who submitted LOIs would be allowed to participate in the privatization of the MTPP.
The plant consists of a 300-MW unit with a once-through type boilerand a 350-MW unit fitted with a conventional boiler. The MTPP is a “must-run unit” (MRU) that provides backup power in instances when supply is deficient or unavailable in the Luzon grid.
Garcia said the Department of Energy (DOE) recently allowed the privatization without the MRU requirement.
“We were looking at the general condition of the plant and the value, and the supply and demand,” she added. “We are looking at all these factors and we figured that it might not be very attractive to biddersif you impose that requirement that they have to run for three years.”
The Psalm will tap a third-party evaluator to assess the power plant.
“We are still in talks with several groups. We have not yet finalized that. We might procure the services of GFIs [government financial institutions] like the DBP [Development Bank of the Philippines]. We are considering them. Alternatively, we have a budget for third-party valuation. We can bid it out, as well,” Garcia said.
