Manila Electric Co. is set to award a 1,800-megawatt supply contract to two companies controlled by San Miguel Corp. this week following the successful competitive selection process, a top executive said Monday.
“The post-qualification process has seven days, at most, to be completed. Thus, the latest date for releasing a notice of award is on Friday, assuming compliance with all post qualification requirements,” Meralco third party bids and awards committee secretariat and Meralco vice president and head of utility economics department Lawrence Fernandez said.
The Meralco TPBAC announced Friday that Excellent Energy Resources Inc. and Masinloc Power Partners Co. Ltd controlled by SMC submitted the “two best bids” for Meralco’s 20-year 1,800 MW supply contract.
ERI offered a levelized cost of electricity of P4.1462 per kilowatt-hour while Masinloc Power Partners Co. Ltd. offered P4.2605 per kWh.
Both are significantly below the LCOE reserve price of P5.2559 per kWh.
Energy Secretary Alfonso Cusi lauded the successful conduct of the Meralco CSP as it would help bring down power rates.
“The result is very encouraging. It will definitely bring down rates, which would be to the benefit of our consumers. CSP is a work in progress, which aims to help us achieve electricity tariff levels that are affordable and competitive enough to attract both foreign and local investors to do business in the Philippines,” Cusi said.
The opening of the qualified bid prices was observed by representatives of the Department of Energy.
SMC president Ramon Ang said the company offered the best bid as it wanted “to serve our country to the best of our ability.”
EERI offered to supply Meralco 1,200 MW from a natural gas-fired power plant, while MPPCL would source power from a 600-MW coal-fired power plant.