AC Energy, two others interested in Malaya plant

Three companies expressed interest to participate in the third round of bidding for the privatization of the 650-megawatt Malaya Thermal Power Plant and its underlying land in Pililla, Rizal.

State-run Power Sector Assets and Liabilities Management Corp. held a pre-bid conference on Thursday as part of the privatization process. Three interested bidders, namely Ayala-controlled AC Energy Inc., Panasia Energy Inc. and Denki Power sent representatives to the pre-bid conference.  

“Denki has not yet submitted a letter of intent but their reps explained that that’s because the signatory is out of town. AC Energy and Pan Asia both submitted already their letters of intent,” said PSALM president Irene Garcia.

The Malaya power plant is currently operational and being dispatched as a must-run unit by grid operator National Grid Corporation of the Philippines.

However, per the Department of Energy’s direction, the power plant will no longer required to run as an MRU once privatized. As an MRU, the power plant is required to run if needed by the grid.

PSALM set the last day for the submission of documentary deliverables on March 12. 

It said only parties that submitted letters of interest and which have been issued PSALM’s bidding package will be allowed to participate in the privatization of the MTPP. The bid opening is set on April 15.

PSALM held two rounds of public biddings in 2019 and both were unsuccessful.

“PSALM is determined to privatize the asset, which is sold on an “as-is-where-is” basis, by taking the necessary steps to adjust the minimum bid price. It has also conducted valuation studies on MTPP and its underlying land in determining the reserve bid price,” the company said.

PSALM is tasked to managed the assets and liabilities of National Power Corp. as mandated by the Electric Power Industry Reform Act of 2001.

Topics: AC Energy Inc. , Panasia Energy Inc. , Denki Power , Malaya Thermal Power Plant , Power Sector Assets and Liabilities Management Corp. , PSALM
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