Corporate News

Filinvest Development unit tops Mt. Apo geothermal auction

Posted on September 25, 2014

A UNIT of Filinvest Development Corp. (FDC) has been named top bidder in the independent power producer administrator (IPPA) auction for the Mt. Apo geothermal power plants.

Emmanuel R. Ledesma, Jr., president and chief executive officer of the Power Sector Assets and Liabilities Management Corp. (PSALM), announced that FDC Misamis Power Corp. tendered an offer of P128 million during the auction on Wednesday.

FDC Misamis is a subsidiary of FDC Utilities, Inc., which in turn is the utilities arm of the listed conglomerate FDC.

The top bidder bested its only competitor, SMC Global Power Holdings Corp., which submitted a P50-million bid.

While both companies passed the technical and financial requirements, Mr. Ledesma said only FDC Misamis met the reserve price set by PSALM’s board.

“Subject to the confirmation and verification of the accuracy, authenticity and completeness of the documents submitted… the PBAC (prequalification, bids and awards committee) shall declare FDC Misamis as the winning bidder at a later date in accordance with the bidding procedures,” Mr. Ledesma said.

The winning bidder for the auction will be in charge of selling the capacity generated by the Mt. Apo power plants under two separate IPP contracts.

Each of the power plants has a capacity of 54.24 megawatts.

Located in Kidapawan City, North Cotabato, the power plants were commissioned on Feb. 15, 1997 and June 17, 1999 under a build-operate-and-own contract with Energy Development Corp.

The cooperation period for both plants is 25 years and will expire on Feb. 15, 2022 and June 17, 2024, respectively.

While the privatization earlier attracted the interest of nine groups -- seven of which were prequalified to bid -- Mr. Ledesma acknowledged that five decided not to participate in the auction.

These companies were EDC Mindanao Geothermal Inc.; GDF Suez Energy Philippines, Inc.; Therma Southern Mindanao, Inc.; Trans-Asia Oil and Energy Development Corp.; and Vivant Geo Power Corp.

PSALM was formed under Republic Act 9136 or the Electric Power Industry Reform Act of 2001 to assume ownership of and manage all National Power Corp. (Napocor) assets, liabilities, contracts with IPPs and other disposable assets.

PSALM firm is also in charge of privatizing and disposing of these assets to liquidate Napocor’s financial obligations. -- Claire-Ann Marie C. Feliciano