MINDORO Grid Corp. has submitted the lowest bid for the operation and maintenance service contract of the 650-megawatt (MW) Malaya thermal power plant, state-led Power Sector Assets and Liabilities Management Corp. (PSALM) said on Thursday.
With Mindoro Grid’s P227,040,000 bid for the one-year service contract, PSALM said it beat the P258,720,000 offer of Soosan ENS Co., Ltd., the other bidder.
The Malaya thermal plant has an approved budget of P264 million, which will be sourced from PSALM’s 2018 and 2019 corporate operating budget.
“Part of the responsibilities under the service contract include the day-to-day upkeep, management and maintenance or repair of the power plant and its equipment,” PSALM said in a statement.
PSALM said in accordance with the implementing rules and regulations of Republic Act No. 9184, or the Government Procurement Reform Act, the bidder will need to undergo post-qualification evaluation before the contract can be awarded.
The Malaya power plant is being managed by PSALM through an operation and maintenance service contract. The current operator of the power plant is STX Marine Service Co. Ltd. whose contract will expire on Aug. 24, 2018.
It was rehabilitated in 1995 by Korea Electric Power Corp. under a 15-year rehabilitate-operate-manage-maintain agreement.
The plant in Pililla, Rizal was designated in 2014 as a “must-run” unit by the Department of Energy. A must-run plant “is compelled to run and provide the needed power supply as deemed necessary to ensure reliability of power supply in the Luzon grid, especially in times of supply shortfall, system security and voltage support,” PSALM said.
Earlier this month, the agency said eight companies had expressed interest in the bidding, and three of them had bought bid documents. — Victor V. Saulon
