SBMA opens bidding for Subic power-plant construction | SubicNewsLink

27 April 2010

SBMA opens bidding for Subic power-plant construction

The Subic Bay Metropolitan Authority (SBMA) is now inviting companies to prequalify and bid for the operation of the Subic Diesel Power Plant (SDPP), a 116-megawatt diesel facility that is the sole power-generating plant in this free port.

The SBMA said in an announcement issued recently that it will lease out on an “as-is, where-is” basis the land and the facilities within the compound of the SDPP, a 10-hectare area located near the Sattler Pier.

Duly prequalified proponents are invited to submit proposals for the lease, operation and maintenance of the land and facilities at the SDPP, which was previously occupied by the state-owned National Power Corp. (Napocor).

The SBMA announced it shall “pursue the short-term operation and maintenance of this existing power plant while the reclassification of the land use of the area from utilities to mixed use or commercial/residential/leisure status takes off.”

In bidding for the operation of the power plant, local or foreign companies or joint ventures will be required to submit proposals that will be subjected to competitive evaluation, the SBMA said.

For local firms, the Subic authority will require, among others, a letter of intent duly signed by the authorized representative of the proponent; the proponent’s business profile stating its corporate structure and current business activities; registration with the Department of Trade and Industry; and article of incorporation or articles of partnership from the Securities and Exchange Commission.

If the proponent is a local corporation, the SBMA would also require that its authorized capital stock “must not be less than P200 million or its equivalent in foreign currency” and that at least 70 percent of its stock is fully paid up.

In addition, the SBMA would call for valid and current mayor’s permit or municipal license; tax-information number and tax-clearance certificate from the Bureau of Internal Revenue; statement under oath that the proponent is not blacklisted or barred from bidding by the government; clearances from the Social Security System and the Department of Labor and Employment; and a statement under oath or audited financial statement certifying/evidencing that the proponent has net assets of not less than $10 million.

The SBMA added that if the proponent or any of its members, management or shareholders are registered in the Subic Bay Free Port, it should not have a record of arrears or has not defaulted with its financial obligations with the SBMA.

Foreign bidders will be asked to submit “all the equivalent of all the required eligibility documents for local firms, insofar as may be applicable, duly authenticated by the appropriate official of the Embassy/Consulate of the Philippines in the bidder’s country.”

Parties interested in bidding for the power plant may obtain terms of reference for the submission of proposals at the office of the SBMA administrator, Building 229, Waterfront Road, Subic Bay Free Port. Bidders have until May 7 to submit their proposals, the SBMA said.

SBMA Administrator Armand Arreza said earlier the location of the Subic power plant is part of a parcel of land scheduled for development into a commercial and leisure complex. (Henry EmpeƱo, Business Mirror)