Two groups show interest in Naga plant sale

MANILA, Philippines - Two investor groups have submitted documentary requirements for the sale of the 55-megawatt Naga Land-Based Gas Turbine Power Plant. In a statement, the Power Sector Assets and Liabilities Management Corp. (PSALM) said that the two interested parties, both Filipino-owned corporations, attended the pre-bid conference last February 12 and are now conducting due diligence assessment on the Naga power plant. This appraisal will end on April 20. The groups were not identified. The privatization of the Naga plant started last month with the publication of an Invitation to Bid in local newspapers. Located at the Cebu I Power Plant Complex in Barrio Colon, Naga, Cebu Province, the plant is scheduled for bidding on April 22. The plant was previously run by Salcon Power Corp. but the company’s contract expired just last year. The government, under Republic Act 9136, or Electric Power Industry Reform Act of 2001, is selling state power assets to pave the way for a system wherein electricity end-users will be able to choose their power suppliers, who will be competing with each other to offer the most cost-efficient supply. — BusinessWorld