At least 14 firms have expressed interest for the 165-megawatt Casecnan hydropower facility, which is scheduled for bidding in March next year.
The interested parties which submitted letters of interest (LOI) to asset-seller Power Sector Assets and Liabilities Management Corporation (PSALM) include: Fresh River Lakes Corporation; Neptune Hydro Inc.; Sta Clara International Corporation; GigaAce 11 Inc.; Pan Pacific Renewable Power Phils Corp and Semirara Mining & Power Corporation.
The others are: Global Hydro Power Corporation; Belgrove Power Corporation; Axia Power Holdings Philippines Corp.; Panasia Energy Inc.; Hansan Solar Corporation; San Roque Power Corporation; Peakpoint Inc.; and the joint venture of EEI Power Corporation and South Korean firm Soosan ENS Co. Ltd. and Soosan Industries Co. Ltd.
According to PSALM President and CEO Dennis Edward A. Dela Serna, the submission of tenders for the Casecnan hydropower plant had been moved from February 24 to March 28 next year because the prospective bidders asked for more time so they can physically visit the site and for them to have leverage also to work on their documentary requirements – given the long holiday breaks during the Christmas season.
“One of the main concerns raised by the bidders is access to the site, they want more time to have access to the site; and also access to documents,” the PSALM chief executive noted.
He similarly indicated that a third party valuation had been engaged by the company in drawing up the reserve price that shall be the basis for the proceeds to be fetched by the government from the divestment of the asset.
“The reserve price has yet to be decided and approved by PSALM Board, so we have a third party consultant for that. The evaluation is still ongoing,” he stressed.
After the submission and opening of bids in March, a seven-day post qualification process shall be carried out on the offer of highest ranking bidder – and that shall be concluded by April 4, 2023.
Following that, a ‘notice of award’ shall be served to the winning bidder by April 27, 2023 – which will be the 30th day since the highest ranking bid was declared during the auction process.
The plant buyer will then comply with all requirements set by PSALM, including submission to the Philippine Competition Commission (PCC) of a request for issuance of letter of non-coverage that will also integrate the buyer’s and seller’s relevant documents.
By July 25 next year, PSALM is slated to issue certificate of effectivity (COE) of the final transaction document; and closing date and turnover of the plant to the buyer will be on September 7.
In a supplemental bid bulletin issued by PSALM, it conveyed that “in accordance with the bidding procedures, bidders are required to acknowledge receipt and acceptance of the terms and conditions of the bidding procedures and each supplemental bid bulletin.”
It was further stipulated that “failure to acknowledge receipt and acceptance of the terms and conditions of the bidding procedures and each supplemental bid bulletin may cause the bid to be considered as not responsive to the bidding procedures, which could result in the disqualification and/or rejection of the bid.”