7 firms eye Casecnan hydropower plant

Published September 27, 2021, 6:37 PM

by Myrna M. Velasco


At least seven firms to join the auction of the one-year operation and maintenance service contract (OMSC) for the 165-megawatt Casecnan hydropower facility in Nueva Ecija, the state-run Power Sector Assets and Liabilities Management Corporation (PSALM) said.

PSALM listed as prospective bidders for Casecnan hydro’s O&M contract, including, Atdinum Energy Inc.; China Energy Engineering Group Heilongjiang Energy Engineering Co. Ltd.; First Gen Hydro Corporation; Kepco KPS Carabao Corporation; Marine-Power Industry Asia Pacific Corporation; SN Aboitiz Power-Magat Inc.; and Soosan ENS Co. Ltd.

According to PSALM, all of the interested parties for the O&M deal attended the pre-bid conference last Friday, Sept.24. where bidders can raise questions as well as clarifications on the bidding terms of the propounded service contract.

The deadline for submission of offers for Casecnan’s OMSC will be on October 12 this year, as anchored on the ‘invitation to bid’ previously issued by PSALM.

“Said proceedings will be done through a hybrid arrangement, where people can participate at the PSALM office, while others may opt to participate via videoconferencing,” the state-run company reiterated.

It emphasized that after the opening of the submitted tenders, “the evaluation of bids will follow.” With that process, the party with the winning offer will also be known on the same day – but the bid will still be subject to the usual post-evaluation undertaking.

Based on PSALM Board’s approval, the OMSC for the Casecnan hydropower facility has approved budget cost of P462 million – and such shall be sourced from the company’s corporate operating budget allotment for 2022.

“Late bids will be rejected outright,” PSALM stressed, and it also specified that the OMSC will commence on November 26 this year and it will be effective for one year.

The procurement of O&M contactor for the Casecnan hydro facility was already carried out in advance by PSALM because the plant’s capacity will still be critically needed in the Luzon grid.

The asset is still due for turnover to the government by December this year – after the lapse of the facility’s build-operate-transfer (BOT) contract with state-run National Power Corporation (the precursor company of PSALM) and that of the National Irrigation Administration.

The hydropower complex is currently operated and managed by the CE Casecnan Water and Energy Company Inc. (CEWEC), the Philippine subsidiary of American firm CalEnergy International that is affiliated with Berkshire Hathaway of billionaire Warren Buffett.

PSALM President Irene Besido-Garcia expounded that “the procurement of an O&M operator will ensure the continuous generation of energy as well as the uninterrupted irrigation service of the Casecnan project upon Casecnan’s turnover from the CEWEC to the government on December 11, 2021.”