THE Power Sector Assets and Liabilities Management Corporation (Psalm) again found gold in scrap as it successfully privatized the decommissioned 225-megawatt Bataan Thermal Power Plant (BTPP) through a negotiated sale transaction that Psalm completed at its Makati office on April 16.
The BTPP is the third decommissioned plant successfully bid out by the power privatization firm.
Psalm concluded negotiations with Rubenori Inc., the lone bidder that submitted its bid documents at the deadline set for the submission of bids.
With an offer of USD2.859 million, Rubenori met the reserve price set by the Psalm Board for the decommissioned power asset located in Limay, Bataan.
The sale covers the structures, plant equipment, auxiliaries and accessories, but not the underlying land.
Rubenori is primarily engaged in the trading of scrap metals for both the domestic and the foreign markets.
It acquires scrap materials, especially from non-operational power plants, sugar and paper mills, mining, and other industrial machineries.
In pursuing its business objectives, the company maintains a strategic relationship with the Japanese firm Sato & Co. Ltd., which has almost 50 years experience in recovering and recycling iron and non-ferrous metals.
Psalm will declare Rubenori as the winning bidder for the BTPP after it has verified the accuracy, authenticity, and completeness of all the submitted bid documents.
The Notice of Award will then be issued to Rubenori, formally declaring the company as the new owner of the retired power plant.
Psalm decided to conduct negotiations after the third round of bidding for the BTPP held on 20 February 2009 failed because the only compliant bidder did not meet the reserve price set by the government.
The BTPP was first auctioned off on 20 April 2005, but the bidding was declared a failure because only one bidder showed up. The second round of bidding held on 30 September 2005 also failed for the same reason.
Aside from the BTPP, Psalm successfully bid out the 200-MW Manila Thermal Plant on 25 April 2008 and the 54-MW Cebu II on 22 January 2009.
The other decommissioned assets slated to be sold this year include the 104-MW Aplaya Power Plant, the 22.3-MW General Santos Diesel Power Plant, and the 850-MW Sucat Thermal Power Plant.