GOVERNMENT privatization arm Power Sector Assets and Liabilities Management Corp. (Psalm) has recently moved to December 11 the bidding for the independent power producer (IPP) contracts of three hydroelectric power facilities owned by the National Power Corp. (Napocor).

“The bidding was moved since the bidders sought for an extension of the due diligence [period] as they have experienced delays owing to the typhoons that hit the country,” the source, who is privy to the bidding, said.

Psalm originally scheduled the bidding of the IPP administration of the 345-megawatt (MW) San Roque, 70-MW Bakun and 30-MW Benguet hydroelectric power plants on November 11 this year.

Among the parties that expressed interest to participate in the bidding of the administration of the contracts of the three hydroelectric power plants, according to the source, include the group of San Miguel Corp. (SMC).

The source added that the SMC group expressed interest to participate in the bidding for IPP administration.

San Miguel Energy Corp (SMEC), the energy-investment arm of diversifying conglomerate SMC, recently won the contracted capacity of the 1,000-MW Sual coal power after offering $1.072 billion.

Psalm earlier said the nine bidders have each received their bidding packages, and are currently conducting due diligence on the hydro IPPs.

The due diligence can be held until two days before the bid submission deadline.

Psalm, which published the invitation to bid from September 7 to 9, was supposed to hold the prebid conference for the interested parties on September 30, to discuss the bidding procedure.

The San Roque hydro plant is in San Manuel, Pangasinan, while the Bakun plant is in Alilem, Ilocos Sur.

The Benguet minihydro facilities is in the Cordillera Administrative Region.

Psalm said it will adopt the same two-envelope bidding system used for its bidding exercises in this auction. The bidders, however, will have to submit three separate bids for each of the contracted capacities to be considered as a qualified participant.

The government agency said its rules state that a qualified bidder may be declared the winning bidder for any one or all of the contracted capacities.

Conrad Tolentino, Psalm acting vice president for asset management and electricity trading, said the interested parties “have to bid for all and can win as many as they can” in the bidding for the three hydro facilities.

“Thus, bidders who will submit an offer for only one or any two of the contracted capacities will be disqualified,” he pointed out. “Likewise, a joint bid for any of the contracted capacities will not be authorized.”