Excellent Energy Resources Inc. and Masinloc Power Partners Co. Ltd., both controlled by San Miguel Corp., submitted the “two best bids” for Manila Electric Co.’s 20-year, 1,800-megawatt supply contract.
Meralco’s third-party bids and awards committee for the competitive selection process identified the two companies with the best bids of the six qualified offers it received.
“Pursuant to Section 5 of the Instructions to prospective bidders, the aforesaid bidders with the best bids will now undergo post-qualification within seven days from date hereof. Thereafter, the TPBAC shall issue respective notices of award in favor of those who satisfactorily passed post-qualification,” the five-man committee said in a notification of best bids Friday.
The committee said the two bidders with the best bids submitted the lowest cost offers, after having been pre-qualified through a detailed evaluation of their document submissions.
EERI offered a levelized cost of electricity of P4.1462 per kilowatt-hour, while Masinloc Power Partners Co. Ltd. submittedP4.2605 per kWh.
Both are significantly below the LCOE reserve price of P5.2559 per kWh.
“We hope to serve our country to the best of our ability,” SMC president Ramon Ang said, when asked to about the company’s aggressive bids.
EERI offered to supply Meralco 1,200 MW from a natural gas-fired power plant, while MPPCL offered to supply 600 MW from a coal-fired power plant.
Mariveles Power Generation Corp., Atimonan One Energy Inc. and GNPower Dinginin Ltd. Co. qualified as “possible next best bids,” with LCOEs of P4.3321 per kWh, P4.6338 per kWh and P5.2500 per kWh, respectively.
St. Raphael Power Generation Corp.’s LCOE of P5.4426 per kWh failed to meet the reserve price.
The opening of the qualified bid prices was observed by representatives of the Department of Energy.
“The TPBAC managed the CSP in full compliance with all rules and regulations issued by the DOE. The terms of reference were reviewed and approved by the DOE, and all contracts that will result from the bidding process will be subjected to regulatory proceedings and evaluation by the ERC,” TPBAC chairman Ferdinand Domingo said.
The TPBAC was assisted in its evaluation by experts from Leidos, a global engineering firm that provides independent engineering advisory service to clients in various energy markets around the world.
“We at TPBAC look forward to completing this ongoing CSP for the much-needed power supply requirement that will provide adequate and reliable electricity at competitive prices to Meralco’s customers for years to come,” Domingo said.
