Power Sector Assets and Liabilities Management Corp. approved the request for reconsideration of bidder Semirara Mining and Power Corp. to participate in the privatization of the 165-megawatt Casecnan hydroelectric power plant in Nueva Ecija province.
PSALM president Dennis Dela Serna said that with the inclusion of SMPC, CHEPP now has eight interested bidders.
The Privatization Bids and Awards Committee notified SMPC in a letter dated March 15, 2023 of its disqualification from the bidding process due to its non-submission of business tax, value added tax and/or percentage tax returns, which forms part of the documentary deliverables required under the bidding procedures.
SMPC submitted to the PBAC a request for reconsideration on March 31, accompanied by relevant documents supporting its exemption from paying business taxes and filing tax returns for the same.
The PBAC sought the confirmation of relevant government agencies that SMPC is, indeed, exempt from paying business taxes and filing tax returns for the same.
“As such, on April 25, 2023, after thorough evaluation and deliberation. the PBAC resolved to grant SMPC’s request for reconsideration and reverse its disqualification,” PSALM said in its latest bid bulletin.
PSALM set the minimum bid price for the sale of CHEPP at $227,272,727.28 upon the recommendation of the PBAC.
PSALM said the winning bidder would also be required to enter into operation and maintenance agreements for the non-power components of the plant and for the trans-basin facilities.
The other pre-qualified bidders are Fresh River Lakes Corp. of First Gen Corp., Neptune Hydro Inc. of SN Aboitiz Power Corp., Global Hydro Power Corp. of Global Business Power Corp., Panasia Energy, Inc., Yuchengco-owned EEI Power Corp. in partnership with Soosan ENS CO. LTD., Soosan Industries Co. Ltd. and Mapalad Power Corp., GigaAce 11 Inc. of ACEN Corp. and Romero-owned Belgrove Power Corp.
PSALM set the Casecnan HEPP bid submission deadline on May 16 and the post-qualification of the highest ranking bidder on May 17 to May 23.
It will issue the notice of award on May 26.
CHEPP is a “run-of-river” type of power plant with limited impounding area in Sitio Pauan, Barangay Villarica, Pantabangan, Nueva Ecija.
The CHEPP was covered by a build-operate-transfer agreement which ended on Dec. 11, 2021.