Right to sell Mindanao coal power attracts 12 bidders

Twelve power companies have expressed interest in bidding to sell the output from a coal-fired power plant on the island of Mindanao in the Philippines.

The 200 MW plant (pictured) is operated by German firm Steag State Power Inc (SSPI) under a 25-year build-operate-transfer contract which is set to end in 2031. Commissioned in 2006, the plant produces around 18 per cent of the island’s power.

Handling the selection of an Independent Power Producer Administrator (IPPA) to sell the power is the state-owned Power Sector Assets and Liabilities Management Corporation (PSALM), which took ownership of the Philippines’ power generation-related assets after the nation’s 2001 power sector reform and is tasked with privatizing power plants, and the contracts that accompany them, formerly owned by the state monopoly National Power Corporation (NPC).

PSALM said over the weekend that the 12 interested companies have now paid non-refundable fees to participate in the selection process and have signed the required confidentiality agreements.  

“We are delighted with the number of prospective bidders, which is more than our first IPPA bidding for the Mindanao region – that of the Mindanao I and II Geothermal Power Plants. We hope that this one will likewise be a successful undertaking,” said PSALM president and CEO Emmanuel Ledesma Jr.

Bidding is scheduled for late September. The interested companies are Conal Holdings, FDC Davao Del Norte Power, FirstGen Northern Power, GDF Suez Energy Philippines, Masinloc Power Partners, Meralco Powergen, Nexif Pte Ltd, SMC Global Power Holdings, SPC Power, Team (Philippines) Energy, Therma Southern Mindanao, Inc (TSMI) and Vivant Energy.

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