STATE-LED Power Sector Assets and Liabilities Management Corp. (PSALM) has declared South Korean firm Soosan ENS Co. Ltd. as the lowest bidder for the operation and maintenance service contract (OMSC) of the 165-megawatt (MW) Casecnan hydro power plant.
In an e-mailed statement on Thursday, PSALM said Soosan ENS submitted the lowest bid of around P253 million, which it described as “substantially lower” than the P462-million approved budget.
The Casecnan hydro facility is a combined irrigation and power generation project located in Pantabangan, Nueva Ecija.
Other qualified bidders for Casecnan’s OMSC are SN Aboitiz Power-Magat, Inc., which submitted an offer of P261.56 million; and KEPCO KPS Philippines Corp., which offered P391.49 million.
Soosan ENS will undergo a post-qualification process that will ensure it meets financial and legal requirements, PSALM said.
“If Soosan ENS passes the post-qualification process, it will be given sufficient lead time to familiarize itself with the operations of CHPP (Casecnan Hydro Power Plant) before the contract’s beginning effectivity date on Nov. 26, 2021,” PSALM said.
PSALM President and Chief Executive Officer Irene Joy J. Besido-Garcia said that after the successful public bidding of the Casecnan plant’s operation and maintenance contract, the agency can now move forward with its goal to privatize the facility.
The Casecnan plant is covered by a build-operate-transfer deal that expires on Dec. 11 this year.
Even during the plant’s privatization, the National Irrigation Administration will continue using it to irrigate farmlands in line with its mandate, according to PSALM.
Under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001, PSALM is required to manage the orderly sale, disposition and privatization of National Power Corp.’s assets, including real estate properties, so it can liquidate all of the latter’s financial obligations in an optimal manner. — Angelica Y. Yang
