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Following the disqualification of the SN Aboitiz Power Inc. (SNAP) group in the initial round of tender submissions, the Public-Private Partnership (PPP) Center is scheduling a rebid of the rehabilitation deal for the 28-megawatt auxiliary units of the Angat hydroelectric power facility.

The decision for a new round of auction was reportedly concurred in by the Metropolitan Waterworks and Sewerage System (MWSS), the owner of the hydro facility’s auxiliary units. “The rebid process will be scheduled very soon,” a highly placed source said.

Sources from both the PPP Center and MWSS indicated that the Aboitiz group was disqualified “because of its failure to adhere to the required documentation processes.”

In particular, it was disclosed that instead of submitting a financial statement and corporate documents that will show the bidder-firm’s financial capability or a certification from a bank that will lend to it in the project, the company submitted a letter from its subsidiary SNAP-Benguet that it will be the one providing support to the venture.

Those in the evaluation team noted that the company was disqualified both on technical and financial terms because of “such failure in documentation.”

And since SNAP was disqualified, it was automatic that the Ayala group being its partner, had also been out in the game.

The other bidder in the P1.155- billion rehabilitate-operate-maintain (ROM) deal is the joint venture of the Lopez-owned First Gen and Metro Pacific Investments Corporation (MPIC) of the Pangilinan group.

There are inherently-linked concerns that need to be resolved in the PPP Center’s offer of ROM arrangement for the auxiliary units to that of the privatization of the 218-megawatt component of the Angat power facility that was won by Korea Water Resources Corporation.

While asset-seller Power Sector Assets and Liabilities Management Corporation (PSALM) already indicated its issuance of certificate of effectivity (COE) for the Angat plant’s transfer to K-Water, it was gathered that the schedule has been moved again around the middle to third week of this month.

The privatization terms that will be finalized by PSALM with K-Water are seen affecting bids for the auxiliary units, hence, interested parties are closely watching developments on that sphere of the asset’s divestment.

The ROM arrangement for units 4 and 5 of the Angat facility will be for 20 years. It will cover the renovation and modernization of the existing auxiliary turbines; construction of a separate control room as well as new switchyard and transformer area; and the operation and maintenance of the units post-rehabilitation.

Reference:

Velasco, M. M. (2013 May 6).  PPP Center Sets Rebid For Angat Rehab Contract. Manila Bulletin. http://www.mb.com.ph/article.php?aid=10707&sid=2&subid=77

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