THE Electricity Generating Authority of Thailand (Egat) is soliciting bids from Filipino firms for the construction of a new substation and the improvement of an existing one in Thailand.
“The Philippine Embassy in Bangkok transmits an invitation to bid from Egat for the ‘supply and construction of the 500-kilovolt Bangkok Noi substation and improvement of the 500-kV Sai Noi substation bulk power supply for the Greater Bangkok and Vicinity Area Phase 3’ project,” Foreign Affairs Undersecretary Laura del Rosario said in a letter forwarded to the Department of Energy (DOE). “The DOE may wish to share this invitation to parties in its network,” the Department of Foreign Affair official said.
In its invitation to bid attached to the letter, Egat said the “medium cost” of the project would amount to 1.06 billion bhat.
“We have the pleasure of taking this opportunity to inform you that Egat is inviting sealed bids. We shall be much obliged if you will kindly pass the above information to the interested parties,” Egat said in a letter. Energy Secretary Carlos Jericho L. Petilla, when sought for comment, said Egat’s bid invite “is open to all Filipino firms, including distribution utilities and power producers.”
A unit of Egat is already involved in the Philippine power sector.
New Growth BV, a wholly owned subsidiary of Electricity Generating Public Co. Ltd. (Egco) of Thailand, which is 25-percent owned by Egat and Meralco PowerGen (MGen), the power-generating firm of Meralco, formed San Buenaventura Power Ltd. Co. (SBPL) for a 455-megawatt (MW) coal-fired power-plant project in Mauban, Quezon.
MGen will own 51 percent of the power facility, including rights to assign up to 2 percent to an approved assignee, while New Growth BV holds the remaining 49 percent. Meralco Chairman Manuel V. Pangilinan, when sought for comment, said the utility firm will not participate in the auction.
“We are focusing on our power-plant situation because we have thin reserves, so we better concentrate in the Philippines first,” he said on Thursday.
Construction of SBPL’s power facility has yet to start, though, but the company said it is already in the final stages of discussion with its preferred engineering, procurement and construction contractor to prepare for the issuance of a notice to proceed within an agreed period to secure the bid price, pending the approval by the Energy Regulatory Commission (ERC) of the power-supply agreement (PSA) between SBPL and Meralco.
SBPL earlier signed a PSA with Meralco for the sale and purchase of the plant’s entire output. The term of the PSA is 20 years from the commercial operation date. The effectiveness of PSA, however, will be subject to review and approval of the ERC.
The power plant will be located adjacent to the existing 460-MW coal-fired power plant of Quezon Power Philippines Ltd., which is majority controlled by Egco.