Power Sector Assets and Liabilities Management Corp. issued the notice of award to Riverbend Consolidated Mining Corp. on the sale of the structures, equipment, auxiliaries and accessories of the decommissioned 850-megawatt Sucat power plant in Muntinlupa City.
Riverbend offered the highest offer during the third round of auction on May 31, besting two other companies with a P305.2-million bid.
PSALM officer-in-charge Lourdes Alzona said the agency issued the notice to Riverbend on June 30, with the company directed to comply with one more requirement.
“There is still the posting of performance bond within 10 days from receipt of NoA,” Alzona said.
Riverbend can now dismantle, clean up and remediate the Sucat power plant site, which means the buyer should return the present site to ground zero (road level) free and clear of wastes, toxic substances, debris and structures.
The two other companies that joined the bidding were VPD Trading and G.G. Uy Bonapor Metal Contractor Co. with financial offers of P201.6 million and P168 million, respectively.
“The successful sale of this asset advances the interest of the government as the proceeds will be part of the additional funding source for the liquidation of National Power Corp.’s debts assumed by PSALM,” Alzona said earlier.
The Sucat plant was operational for 33 years before Units 1 and 4 were decommissioned in January 2000. Units 2 and 3 were shut down in January 2002.
PSALM was supposed to rebid the Sucat facility last year but had to wait for clearance from the Environment Department.
PSALM manages the assets and liabilities of Napocor. The PSALM board earlier approved the privatization of the decommissioned Sucat plant in September last year.
PSALM declared the second round of bidding for the Sucat thermal power plant in April 2016 a failure after the three qualified bidders did not meet the reserve price.
The first round of bidding for the Sucat facility failed in 2015.