THE Power Sector Assets and Liabilities Management Corp. (PSALM) is pursuing the sale of the 850-megawatt (MW) decommissioned Sucat Thermal Power Plant.
“We will rebid it, definitely. But we are waiting for board approval. It has already been included in the agenda,” PSALM President Lourdes S. Alzona said.
There is no timetable set for the auction, but Alzona said it could take place “in the latter part of the year or early next year.”
PSALM earlier auctioned the disposal of the Sucat power facility but later terminated the asset purchase agreement due to breach of the standby letter of credit issued by Genetron International Marketing, which submitted the highest bid of P602 million over two others: Sta. Clara International Corp.’s P561 million and VPD Trading’s P482 million. The board, she added, will also tackle the best scheme for the divestment.
There were plans raised before to restore some of the units of the decommissioned plant through rehabilitation. But former Energy Secretary Carlos Jericho L. Petilla said it is no longer advisable to jump-start the power facility again. Besides, it is more expensive to rehabilitate an old plant than to construct a new one.
“That’s been flooded already and it may not be feasible to recommission it. However, if PSALM bids again it will be on the basis that the property will be used for power generation.”
Petilla meant that the land where the Sucat plant is situated could still be allocated for energy use, possibly convert the area where a gas-fed electricity-generating facility can be put up to serve as anchor load for a gas pipeline traversing the routes from Batangas to Manila.
The oil-fired power plant—in Sucat, Muntinlupa City—was previously owned by the Manila Electric Co., and later acquired by the National Power Corp. in November 1978. It consists of Unit 1, which has a rated capacity of 150 MW; Units 2 and 3, each with 200 MW; and Unit 4, which is rated at 300 MW.
The Sucat plant was formerly known as the Gardner Snyder Thermal Plant, and officially commenced commercial operations on August 1,1968, with the completion of Unit 1.
Units 2 to 4 followed operations after their construction in 1970, 1971 and 1972, respectively.
In January 2000 Units 1 and 4 were decommissioned and placed under preservation. Units 2 and 3 followed later in January 2002.