The Power Sector Assets and Liabilities Management (PSALM) has named top bidders for the 'strips of energy' and 'bulk energy' for the sales contracts of the 588MW Unified Leyte geothermal power plant (ULGPP).
Located in Tongonan, Leyte province, the Unified Leyte project comprises 125MW Upper Mahiao, 232.5MW Malitbog and 180MW Mahanagdong power plants and the 51MW optimisation plants.
Of the total capacity, PSALM has awarded 200MW of 240MWsum of strips ranging between 1MW and 40MW for independent power producer administrators (IPPAs) and the remaining 40MW retained as security capacity, while more than 240MW capacity has been awarded to the IPPA for the bulk energy.
PSALM has bid out the rights to manage 'strips of energy' portion to seven top bidders including 40MW each to FDC Utilities, Unified Leyte Geothermal Energy (ULGEI), Trans-Asia Oil and Energy and Aboitiz Energy Solutions at a generation payment bid of PHP5.2588/kWh, PHP5.2100/kWh, PHP5.0166/kWh and PHP4.9188/kWh, respectively.
The other three successful bidders in the 'strips of energy' portion include Waterfront Mactan Casino Hotel (3MW at PHP4.9000/kWh), Good Friends Hydro Resources (20MW at PHP4.8800/kWh) and Vivant Energy (17MW at PHP4.6629/kWh).
PSALM president and CEO Emmanuel Ledesma said PSALM has set Vivant's PHP4.6629/kWh offer as the winning price for the IPPA-strips following the bidding results.
"As stipulated in the bidding procedures, the winning price, which is the uniform generation payment that will be adopted by all the winning bidders in the ULGPP IPPA-Strips, will either be the winning bid price for the 200th strip of energy or, if there will be less than 200 strips, the winning price closest to the reserve price," said Ledesma.
However, the highest ranking bidders are required pass the post-qualification stage before being declared as winners.
Ledesma added: "The PSALM Privatization, Bids Awards Committee (PBAC) will conduct post-qualification on the highest ranking bidders to determine the accuracy, authenticity and completeness of all their documentary submissions, including the standby letters of credit and their full compliance with the Bidding Procedures."
Meanwhile, PSALM has successfully awarded the sales contract for more than 240MW for the 'bulk energy' portion to ULGEI, which has been selected among three bidders with the others being Trans-Asia and Aboitiz Renewables. ULGEI has tendered a bid of PHP215m (€3.7m) for the 'bulk energy' portion.