Philippines to go ahead with 200MW Mindanao plant bidding

Current rate will be energy generation cost peg.

The Philippines' Energy Secretary Carlos Petilla has told reporters that Power Sector Assets and Liabilities Management Corp. (PSALM) might push through with the bidding of the 200MW Mindanao coal-fired power plant.

According to a research note from Maybank Kim Eng, the plant is the biggest supplier in Mindanao accounting for about 20 percent of the regional grid’s requirement.

The plan will go as scheduled but might peg the energy generation cost for the plant to its current rate over two to three years to prevent a spike in power rates among clients of the Mindanao coal-fed power plant.

Here's more from Maybank Kim Eng:

PSALM plans to bid out the Independent Power Producer Administrator contract for the power station in September and the following 12 firms have complied with initial requirements to join the bidding:

Conal Holdings Corp., FDC Davao Del Norte Power Corp., First Gen Corp.'s (FGEN-BUY) FirstGen Northern Power Corp., GDF Suez Energy Philippines Inc., Masinloc Power Partners Co. Ltd., Manila Electric Co.'s (MER-HOLD) Meralco Powergen Corp., Nexif Pte. Ltd., San Miguel Corp.'s (SMC-Not Rated) SMC Global Power Holdings Corp., SPC Power Corp., Team Energy Corp., Aboitiz Power's (AP-HOLD) Therma Southern Mindanao Inc. and Vivant Energy Corp.