Despite failure of the second round of bidding for the 650 megawatts (MW) Malaya thermal power plant (TPP) and its underlying land in Pililla, Rizal, the Power Sector Assets and Liabilities Management Corp. (PSALM) is optimistic the property can be offloaded by the government at a beneficial price.
The state-run firm conducted the latest round of bidding for the power plant last Friday with four pre-qualified bidders passing the initial stage: Panasia Energy, Inc., Phinma Energy Corp, Hill Trench Power Inc. and Therma Central Visayas Inc.
Right before the deadline of submission of the financial bid, Fort Pilar Energy Inc., Panasia Energy Inc. and AC Energy Philippines Inc. informed PSALM they cannot meet the minimum bid price (MBP) of P4,481,796,017.
One other bidder, D.M. Wenceslao and Associates Inc., submitted a sealed bid but the process was declared a failure since there was no other bid submitted.
Although the bidding rules could have enabled PSALM to proceed with negotiated sale with D.M. Wenceslao, its bid was also below the MBP.
“PSALM will report to its board of directors the outcome of (the) bidding so that it can take the necessary steps to lower the MBP. The next round of bidding for the Malaya plant will commence at the soonest possible time,” it said.