Power Sector Assets and Liabilities Management Corp. is rebidding the operations and maintenance service contract of the 650-megawatt Malaya thermal power plant in Rizal province.
PSALM president Irene Joy Besido-Garcia said the first round of bidding for the Malaya plant contract in May was declared a failure.
“The first round of bidding for OMSC Malaya TPP generated two bidders. One bidder was disqualified during bid evaluation, while the lowest ranking bidder was post-disqualified. We have declared a failure of bidding and we have commenced the second round with the publication of the invitation to bid on Aug. 2018 and conduct of pre-bid conference [Wednesday],” Garcia said.
PSALM invited bidders to participate in the procurement of the OMSC for the Malaya plant with an approved budget of P213 million. Bid submission was set on Aug. 30.
PSALM previously declared Mindoro Grid Corp. as the lowest bidder to operate and maintain the Malaya thermal power plant during the first round of bidding in May.
Mindoro Grid offered P227 million on May 30, lower than the P258-million bid of Soosan ENS Co. Ltd.
The Malaya power plant OMSC had an approved budget of P264 million in the first bidding.
Among the responsibilities under the service contract were the day-to-day upkeep, management, and maintenance or repair of the power plant and its equipment.
PSALM manages the Malaya plant through an OMSC. The current operator of the power plant is STX Marine Service Co. Ltd. whose contract will expire on Aug. 25, 2018.
The Malaya power plant was designated as a ‘must-run’ unit by the Energy Department. As an MRU, it is required to run and provide the needed power supply as deemed necessary to ensure the reliability of power supply in the Luzon grid, particularly in times of supply shortfall, system security and voltage support.
The Malaya plant consists of a 300-MW unit with a once-through type boiler and a 350-MW unit fitted with a conventional boiler.