By NIEL V. MUGAS, The Manila Times Reporter

Fresh from the aborted sale of its biggest power plant to date, state-run Power Sector Assets and Liabilities Management Corp. (PSALM) is set to bid out today the Pantabangan-Masiway hydroelectric complex.

PSALM, the agency tasked to sell the assets of the National Power Corp., has expressed confidence that it would successfully bid out the hydro facility due to the flurry of investor interest.

Seven investor groups have been prequalified to participate in the auction of the 112-megawatt Pantabangan-Masiway facility. This is the second power plant PSALM will auction this year, following the failed bid of the 600-megawatt Calaca coal-fired plant in April.

Bidders for the Pantabangan-Masiway facility include the Manila Electric Co.’s Energy Inc. and First Gen Corp., both of the Lopez group of companies, the Korean Electric Power Corp., the United States-based CalEnergy International, SN Aboitiz Power, which is a partnership between the Aboitiz group and SN Power Holdings of Singapore.

The Department of Energy expects a smooth sale of the Pantabangan-Masiway facility after the National Irrigation Administration approved an operating and maintenance agreement with the next owner of the plants.

The asset-purchase agreement for the Pantabangan-Masiway facility requires the winning bidder to deliver at least 40 percent of the purchase price as upfront payment payable on or before the closing date. The balance of 60 percent may be paid in 14 equal semiannual installments with an interest of 12 percent a year compounded semiannually.

PSALM has yet to disclose the minimum bid requirement.

Froilan A. Tampinco, PSALM vice president for asset management and electricity trading, said the winning bidder is also required to post a performance bond equivalent to 2 percent of the purchase price. The performance bond will be reduced every year equivalent to 2 percent of the aggregate amount of the deferred payments.

The winning bidder will also be required to post a deferred payment security deposit equivalent to at least the next deferred payment in the form of either cash, currently dated manager’s check or an irrevocable standby letter of credit acceptable to PSALM.