FDC bids P128M for PSALM’s 1st Mindanao IPPA auction

MANILA, Philippines – FDC Misamis Power Corporation submitted the highest bid for the selection and appointment of the Independent Power Producer Administrator (IPPA) for the output of the Mindanao I and II (Mt Apo 1 and 2) geothermal power plants.

The Power Sector Assets and Liabilities Management (PSALM) Corporation made the announced on Wednesday, September 24.

FDC offered P128,000,888.88 ($2.88 million*) in monthly payment for PSALM’s first Mindanao IPPA, edging out the P50-million ($1.13 million) bid of SMC Global Power Holdings Corporation. 

Of the 7 pre-qualified bidders, two submitted bids before the 12 noon bid submission deadline set by PSALM. Apart from FDC and SMC Global, the other bidders include:

• Energy Development Corporation (EDC) Mindanao Geothermal Inc
• GDF Suez Energy Philippines Inc
• Therma Southern Mindanao Inc
• Trans-Asia Oil and Energy Development Corporation
• Vivant Geo Power Corporation

FDC’s bid will still be verified before a notice of award is issued officially declaring the company as the winning bidder, PSALM President Emmanuel R. Ledesma, Jr said.

The auction initially generated interest from 9 prospective bidders which completed PSALM’s initial requirements. The list was narrowed down to 7 after PSALM evaluated the documentary deliverables it had received from the prospective bidders.

The Mt Apo 1 and Mt Apo 2 geothermal power plants have a rated capacity of 54.24 megawatts (MW) each, and are located in Kidapawan City, North Cotabato.

Owned and operated by EDC, the power plants were commissioned on February 15, 1997 (Mt Apo 1), and June 17, 1999 (Mt Apo 2), under a build, operate, and own contract scheme.

The cooperation period for both plants is 25 years, and the same will expire on February 15, 2022 for Mt Apo 1 and June 17, 2024 for Mt Apo 2. – Rappler.com

*$1 = P44.33