PSALM starts bidding process for Calaca facility

Encouraged by strong investor response to the auction of the 600-megawatt Masinloc power plant, the state-run Power Sector Assets and Liabilities Management Corp. on Tuesday started the issue invitation to bid for the 600-MW Calaca Thermal plant. In an Invitation to Bid it published in local newspapers, PSALM said parties interested in acquiring the Batangas facility may start submitting their Letters of Interest to participate in the bidding exercises. PSALM said the the deadline for submission of LOIs is June 29, 2007. To avail themselves of the Bidding Package, interested investor groups will also be required to execute a Confidentiality Agreement and Undertaking with PSALM and pay a non-refundable participation fee of $2,000 not later than July 4, 2007. PSALM will hold a Pre-bid Conference with qualified participants for the Calaca plant bidding on July 18, 2007 at its main office in Makati City. The Calaca power plant consists of two 300-MW generating units which were commissioned on September 11, 1984 (Unit 1) and 15 July 1995 (Unit 2). The facility was primarily designed to run as a base-load plant and can operate as a network-frequency regulating plant at a minimum stable load of 150 MW per unit. Both units are also designed for plant redundancy, meaning one unit can undergo maintenance without affecting the plant’s total output. The Calaca facility was first offered to prospective investors on May 18, 2005, but the auction was canceled after two of the three qualified bidders backed out. The second round of bidding, which was held on April 27, 2006, was also declared a failure as the proposals submitted by two bidders were below the reserve price. - GMANews.TV