PSALM may adjust Malaya bid price as 2nd bidding fails

By Lenie Lectura -November 25, 2019
from Business Mirror

THE Power Sector Assets and Liabilities Management Corp. (PSALM) may adjust the minimum bid price (MBP) of the  650-megawatt (MW) Malaya Thermal Power Plant (MTPP) after it declared last week’s rebidding a failure.

“PSALM will report to its board of directors the outcome of today’s bidding so that it can take the necessary steps to lower the MBP. The next round of bidding for the Malaya plant will commence at the soonest possible time,” said PSALM Friday night.

The MBP was set at P4,481,796,017. However, 3 of the 4 prequalified bidders—Panasia Energy Inc., Ar Inc.—told PSALM before the deadline for the submission of financial bid that they cannot meet the MBP.

The fourth prequalified bidder, DM Wenceslao and Associates Inc.,  submitted a sealed bid.

“PSALM declared a failure of the second round of public bidding because there was only one bid. And pursuant to the bidding rules, PSALM then proceeded to go through the process of negotiated sale with DM Wenceslao.

Nonetheless, when PSALM opened the lone bid from DM Wenceslao, it was below the MBP. Thus, PSALM was constrained to also declare a failure of the negotiated sale.

The Malaya plant is currently operational and being dispatched as a must-run unit. As per the Department of Energy’s (DOE) direction, once privatized on an “as is where is basis,” Malaya would no longer be required to run as an MRU.

MTPP is located in Pililla, Rizal.