PSALM: 14 bidders keen on CHEPP
BY LENIE LECTURA – FEBRUARY 1, 2023
from Business Mirror
Fourteen prospective bidders have signified their intent to participate in the sale of the 165-megawatt Casecnan Hydroelectric Power Plant (CHEPP), the Power Sector Assets and Liabilities Management Corp. (PSALM) said Tuesday.
The 14 firms are Fresh River Lakes Corp., Neptune Hydro Inc., Sta. Clara International Corp., GigaAce 11 Inc., Pan Pacific Renewable Power Phils. Corp., Semirara Mining & Power Corp., Global Hydro Power Corp., Belgrove Power Corp., Axia Power Holdings Philippines Corp., Panasia Energy Inc., Hansan Solar Corp., San Roque Power Corp., EEI Power Corp. with Soosan ENS CO. LTD. and Soosan Industries Co. Ltd., and Peakpoint Inc.
During the pre-bid conferences held last week, PSALM said the interested bidders raised their concerns on the terms and conditions of the sale.
“The two conferences enlightened bidders of their lingering queries on the bidding process and the potential concerns attendant to managing the Casecnan plant,” said PSALM.
Among the key issues discussed include tax laws and regulations that could affect the successor company; role of the winning bidder to lead the crafting of the Special Use Agreement in Protected Areas (SAPA) with the Department of Environment and Natural Resources; water permits for power generation and irrigation; other permits currently enforced or to be secured by the winning bidder; observance of Indigenous Peoples (IP) rights when the new owner takes over the management of the plant; and safety considerations prior to inspecting the plant.
The CHEPP is a “run-of-river” type of plant with limited impounding area. The water from the reservoir flows into the plant’s powerhouse, down to the Pantabangan lake and into the irrigation channels of the National Irrigation Administration, which will continue its mandate of irrigating farmlands even after the privatization of the CHEPP.
Located at Sitio Pauan, Brgy. Villarica, Pantabangan, Nueva Ecija, about 150 kilometers north of Manila, the CHEPP was covered by a build-operate-transfer agreement which ended on December 11, 2021.
“We envision that the sale of the Casecnan Plant will be successful, efficient and judicious for PSALM and the winning bidder who will take over its management.
This second pre-bid conference paves the way for a good return on investment for the winning bidder, starting with a more market-responsive price and on an ‘as-is, where-is’ and cash basis sale for the Casecnan plant,” said PSALM President and CEO Dennis Edward A. Dela Serna.
PSALM held its second and third pre-bid conferences last January 25 and 27, respectively. The deadline for the submission of bids is on March 28, 12 noon at the PSALM Office in Quezon City.
