Lopez’s First Gen bags 2 hydropower projects
The Philippine Star 09/09/2006
The Power Sector Assets and Liabilities Management Corp. (PSALM) declared yesterday the Lopez-owned First Gen Corp. as the winning bidder for the 100 megawatt (MW) Pantabangan and 12-MW Masiway hydropower plants in Nueva Ecija.
PSALM president Nieves L. Osorio said First Gen submitted a bid of $129 million, besting the only other bidder SN Aboitiz Power Corp. (SNAP), a partnership between Aboitiz Power Corp. and SN Power Holding Singapore which bid $112 million.
First Gen’s bid was way above the reserve price of $80 million set by PSALM for the two hydropower plants.
The Pantabangan facility is located in San Jose, Nueva Ecija and is composed of two 50 MW units. Both were commissioned in 1977.
Masiway power facility, on the other hand, is located near Pantabangan plant and was commissioned in 1981.
First Gen also won the action for the 1.6 MW Agusan hydropower plant for $1.53 million last year.
"We are very happy with the offers. Clearly, this is the result of good competition and continued interest in Philippine power assets," Energy Secretary Raphael P.M. Lotilla said.
Osorio said the energy sector welcomes the success of the bidding. "We will work to sustain this as we are set to move forward with the privatization of power assets. Next to be offered is the 360-MW Magat hydroelectric complex in Isabela and the 25-year concession of TransCo (National Transmission Corp.)," she added.
SNAP and First Gen submitted their bids before the 12:00 pmdeadline set by PSALM, the agency tasked by the government to privatize the assets of the National Power Corp. (Napocor).
The terms of the sale are contained in the asset purchase agreement (APA) between the winning bidder and PSALM. First Gen will also sign a land lease agreement with PSALM, and the Operation and Maintenance agreement with the National Irrigation Administration for the non-power components.
The APA for the Pantabangan-Masiway facility requires the winning bidder to deliver at least 40 percent of the purchase price as upfront payment payable on or before the closing date. The balance of 60 percent may be paid in 14 equal semi-annual payments with an interest of 12 percent per annum compounded semi-annually.
The winning bidder is also required to post a performance bond of $2.58 million, equivalent to two percent of the purchase price. The performance bond will be reduced every year equivalent to two percent of the aggregate amount of the deferred payments.
In addition, the winning bidder will be required to post a deferred payment security deposit equivalent to at least the next deferred payment in the form of cash, currently dated manager’s check or an irrevocable stand-by letter of credit acceptable to PSALM.
Representatives of the Philippine Chamber of Commerce and Industry and Procurement Watch, a non-government organization, attended the bidding as observers.
Aside from Masiway and Pantabangan, PSALM will also bid out 300-MW Magat facility and the 275-MW Tiwi and 425.73-MW Makiling-Banahaw geothermal complexes. Pantabangan-Masiway is the second major power asset to be bid out by PSALM this year. PSALM bid out the 600-MW Calaca coal plant in April, which resulted in a failure after the offers fell short of the reserve price set for the plant.
The Power Sector Assets and Liabilities Management Corp. (PSALM) declared yesterday the Lopez-owned First Gen Corp. as the winning bidder for the 100 megawatt (MW) Pantabangan and 12-MW Masiway hydropower plants in Nueva Ecija.
PSALM president Nieves L. Osorio said First Gen submitted a bid of $129 million, besting the only other bidder SN Aboitiz Power Corp. (SNAP), a partnership between Aboitiz Power Corp. and SN Power Holding Singapore which bid $112 million.
First Gen’s bid was way above the reserve price of $80 million set by PSALM for the two hydropower plants.
The Pantabangan facility is located in San Jose, Nueva Ecija and is composed of two 50 MW units. Both were commissioned in 1977.
Masiway power facility, on the other hand, is located near Pantabangan plant and was commissioned in 1981.
First Gen also won the action for the 1.6 MW Agusan hydropower plant for $1.53 million last year.
"We are very happy with the offers. Clearly, this is the result of good competition and continued interest in Philippine power assets," Energy Secretary Raphael P.M. Lotilla said.
Osorio said the energy sector welcomes the success of the bidding. "We will work to sustain this as we are set to move forward with the privatization of power assets. Next to be offered is the 360-MW Magat hydroelectric complex in Isabela and the 25-year concession of TransCo (National Transmission Corp.)," she added.
SNAP and First Gen submitted their bids before the 12:00 pmdeadline set by PSALM, the agency tasked by the government to privatize the assets of the National Power Corp. (Napocor).
The terms of the sale are contained in the asset purchase agreement (APA) between the winning bidder and PSALM. First Gen will also sign a land lease agreement with PSALM, and the Operation and Maintenance agreement with the National Irrigation Administration for the non-power components.
The APA for the Pantabangan-Masiway facility requires the winning bidder to deliver at least 40 percent of the purchase price as upfront payment payable on or before the closing date. The balance of 60 percent may be paid in 14 equal semi-annual payments with an interest of 12 percent per annum compounded semi-annually.
The winning bidder is also required to post a performance bond of $2.58 million, equivalent to two percent of the purchase price. The performance bond will be reduced every year equivalent to two percent of the aggregate amount of the deferred payments.
In addition, the winning bidder will be required to post a deferred payment security deposit equivalent to at least the next deferred payment in the form of cash, currently dated manager’s check or an irrevocable stand-by letter of credit acceptable to PSALM.
Representatives of the Philippine Chamber of Commerce and Industry and Procurement Watch, a non-government organization, attended the bidding as observers.
Aside from Masiway and Pantabangan, PSALM will also bid out 300-MW Magat facility and the 275-MW Tiwi and 425.73-MW Makiling-Banahaw geothermal complexes. Pantabangan-Masiway is the second major power asset to be bid out by PSALM this year. PSALM bid out the 600-MW Calaca coal plant in April, which resulted in a failure after the offers fell short of the reserve price set for the plant.
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