PSALM: Casecnan plant a ‘good investment’
State-run Power Sector Assets and Liabilities Management Corporation said the company that will take over the operations and management of the 165-megawatt Casecnan Hydroelectric Power Plant in Nueva Ecija will have a good return on investment.
“We envision that the sale of the Casecnan Plant will be successful, efficient, and judicious for PSALM and the winning bidder who will take over its management,” PSALM president and chief operating officer Dennis Edward A. de la Serna said.
Last week, PSALM held its second and third pre-bid conferences that provided bidders with an avenue to inquire and clarify the terms and conditions of the sale.
Good return on investment
“This 2nd pre-bid conference paves the way for a good return on investment for the winning bidder, starting with a more market-responsive price and on an “as-is, where-is” and “cash” basis sale for the Casecnan plant,” De la Serna added.
The privatization of the Casecnan Plant drew the interest of 14 bidders, namely: Fresh River Lakes Corp., Neptune Hydro Inc., Sta. Clara International Corp., GigaAce 11 Inc., Pan Pacific Renewable Power Phils. Corp., Semirara Mining and Power Corp., Global Hydro Power Corp., Belgrove Power Corp., Axia Power Holdings Philippines Corp., Panasia Energy Inc., Hansan Solar Corp., San Roque Power Corporation, Joint — EEI Power Corporation, Soosan ENS CO. Ltd., Soosan Industries Co. Ltd. and Peakpoint Incorporated.
Among the key issues discussed in-depth between and among the bidders were the tax laws and regulations that could impact the successor company and the role of the winning bidder to lead the crafting of the Special Use Agreement in Protected Areas with the Department of Environment and Natural Resources.
Likewise, water permits for power generation and irrigation, other permits currently enforced or to be secured by the winning bidder, observance of Indigenous Peoples’ rights when the new owner takes over plant management, and safety considerations before inspecting the plant were discussed.
Deadline for bids submission
The deadline for bids submission for the Casecnan Plant is on 28 March, noon at the PSALM Office in Quezon City.
Interested parties are advised to send their inquiries to the Chairperson of the Privatization, Bids and Awards Committee through the email address of the PBAC Secretariat.
Developed in the 1990s, Casecnan Plant is a “run-of-river” type of power plant with a limited impounding area located at Sitio Pauan, Brgy. Villarica, Pantabangan, Nueva Ecija. It was covered by a build -operate-transfer agreement, which ended on 11 December 2021.