State-run Power Sector Assets and Liabilities Management Corp. said Tuesday it is set to rebid the structures, plant equipment, auxiliaries and accessories of the decommissioned 850-megawatt Sucat thermal power plant in September.
“The PSALM board has just approved the privatization of decommissioned Sucat plant with September 2016 as target date of bidding,” PSALM officer-in-charge Lourdes Alzona said. PSALM manages the assets and liabilities of National Power Corp.
PSALM in April declared the second round of bidding for the Sucat thermal power plant after the three qualified bidders did not meet the reserve price. PSALM sets the reserve price but does not disclose it.
“This will be another round of regular bidding, but may proceed to a negotiated sale in case this bidding has been declared a failure,” Alzona said.
PSALM said that initially, four bidders submitted offers for the second round of bidding for the Sucat decommissioned plant sale. However, one bidder was disqualified after it was found non-compliant with the legal requirements of the bidding process.
The three qualified bidders were Riverbend Consolidated Mining Corp., VPD Trading and Sta. Clara International.
PSALM plans to use proceeds from the Sucat privatization to liquidate the financial obligations it assumed from the National Power Corp. PSALM manages the assets and liabilities of Napocor as mandated by the Electric Power Industry Reform Act of 2001.
The first round of bidding failed in 2015 amid allegations of dubious documents submitted by the winning bidder.
PSALM said it would selling all plant equipment, structures, auxiliaries and accessories of the Sucat plant on an “as is, where is” basis.
Located in Sucat, Muntinglupa City, the Sucat plant is an oil-fired power plant that was previously owned by Manila Electric Co. and was later acquired by Napocor in November 1978.
It consists of Unit 1, which has a rated capacity of 150 MW; Units 2 and 3, each with 200 MW; and Unit 4, which is rated at 300 MW.
Formerly known as the Gardner Snyder thermal plant, the Sucat facility officially commenced commercial operations on Aug. 1, 1968 after the completion of Unit 1.
Units 2, 3 and 4 started operating in 1970, 1971, and 1972, respectively. In January 2000, Units 1 and 4 were decommissioned and were placed under preservation. Units 2 and 3 were shut down in January 2002.