PSALM selects Fort Pillar Energy as preferred bidder for 650 MW Malaya Thermal Power Plant (MTPP) tender

Philippine's Power Sector Assets and Liabilities Management Corporation (PSALM) has declared Fort Pilar Energy Inc. as the winning negotiating party for the privatization of the 650-megawatt (MW) Malaya Thermal Power Plant (MTPP) after it has submitted the highest offer with an amount of PHP3,123,500,000.00 (US$65.17 million). This highest offer surpassed the Minimum Offer Price of PHP1,845,222,000.00 (US$38.502 million) that was set by the PSALM Board of Directors for this negotiated sale process.

Fort Pillar Energy beats another qualified negotiating party, AC Energy Corporation, which submitted an offer amounting to PHP2,220,000,000.00 (US$46.32 million).

As announced during the proceedings of tender, the results of the negotiation exercise will be subject to a post-qualification process to ensure that the winning negotiating party indeed met all the financial and legal requirements as indicated in the negotiation procedures.

Representatives from the Commission on Audit (COA), the Department of Finance (DOF), the Department of Justice (DOJ), and the National Power Corporation (NPC) witnessed the proceedings.

MTPP is currently being dispatched as a Must Run Unit (MRU) by NGCP. However, on the turn-over date, MTPP is no longer required to run as an MRU as approved by the Department of Energy (DOE).