Aboitiz considers bid for Calaca plant

02/24/2009

The Aboitiz group is looking at possibly bidding for the 600 megawatt Calaca coal-fired power plant, which a conglomerate led by French firm Suez Energy had abandoned after giving the highest offer for it in an earlier auction.

Aboitiz Power Corp. (AP) president Erramon Aboitiz said the firm was initially not interested in Calaca but he added “we are evaluating it now.”

Aboitiz said AP had not made a firm decision to bid for the plant.

“We don’t know what Psalm will do about it so we’re just waiting for its announcement,” added Aboitiz.

Jose Ibazeta, president of state power assets holding firm Power Sector Assets and Liabilities Management Corp., said Psalm had posted the rebidding of Calaca and they are optimistic it will be disposed of at the soonest possible time.

Ibazeta said they are targeting to write letters to the interested parties this week.

But he admitted they are not expecting to get the same bid price offer of the Suez Energy consortium valued at $787 million.

Last month, the winning bidder for the Calaca plants Suez Energy and partner Calaca Holdco Inc., now known as Emerald Energy Corp. (EEC), decided to terminate its assets purchase agreement with Psalm citing the deteriorating conditions of the power facility.

Ibazeta, however, in an earlier interview asserted that the reason of EEC has no basis.

Psalm also forfeited the bond posted by EEC when it decided not to push through with the deal.

According to Ibazeta, because of what happened, the government can now enter into a negotiated bid.

“I think there is really no basis for the contentions of Emerald to say that there was a severe drop in the capacity of the plants,” the Psalm chief earlier declared.

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