State-run Power Sector Assets and Liabilities Management Corp. declared the second round auction for the structures, plant equipment, auxiliaries and accessories of the decommissioned 850-megawatt Sucat Thermal Power Plant a failure after the three qualified bidders did not meet the reserve price.
“The bidding was declared a failure because none of the qualified bidders met the reserve price set for the asset package,” PSALM officer-in-charge Lourdes Alzona said in a statement.
The PSALM board sets the reserve price which it did not disclose. PSALM conducted the second round of bidding on April 8.
PSALM said four bidders intially submitted their offers for the sale of the Sucat decommissioned plant.
One bidder, however, was disqualified after it was found non-compliant with the legal requirements of the auction process.
The three qualified bidders, meanwhile, were Riverbend Consolidated Mining Corp., VPD Trading and Sta. Clara International.
PSALM earlier reported that as many as 10 prospective bidders were interested to join the bidding.
PSALM said its privatization bids and awards committee would convene to discuss the next steps for the asset sale. PSALM has the option to enter into a negotiated bidding.
PSALM plans to use proceeds from the Sucat privatization to liquidate the financial obligations it assumed from 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 auction failed last year amid allegations of dubious documents submitted by the winning bidder.
PSALM is 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 earlier owned by Manila Electric Co. and later acquired by Napocor in November 1978.
It consists of Unit 1 with 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 started commercial operations on August 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 placed under preservation. Units 2 and 3 were shut down in January 2002.