PPP Center
Press Release
December 12, 2012
The Metropolitan Waterworks and Sewerage System (MWSS) commences bidding with the issuance of the Invitation to Prequalify and Bid (ITPB) today for the first hydro-electric power project under the Aquino Administration’s Public-Private Partnership (PPP) Program.
The project seeks private sector participation in the rehabilitation, operation and maintenance (ROM) of the MWSS-owned auxiliary turbines 4 and 5 installed in the Angat Hydro-electric Power Plant (AHEPP) Complex in San Lorenzo, Norzagaray, Bulacan.
The estimated Php 1.155 billion modernization of the auxiliary units is intended to generate 28MW at full capacity to supplement efforts in ensuring additional power capacity generation for the Luzon grid. This will be supportive of the Department of Energy’s (DOE) projected 10,450 MW additional capacity requirement based on the Power Supply and Demand Outlook for 2012-2030.
The private partner shall operate and maintain the modernized auxiliary turbines for a period of 20 years, inclusive of the one year and three months rehabilitation period. Selection of the winning private partner is expected to be completed by July 2013.
For the last ten years, auxiliary turbines 4 and 5 have underperformed in terms of operation and power generation. In the long course of electrical and mechanical equipment operation, they have not received major overhauls causing vital components and system machines to deteriorate. A fire incident in May 2012 has damaged auxiliary turbine 5, affecting the shared transformer of both auxiliary turbines making them unusable.
The private proponent for this ROM project shall rehabilitate and modernize the existing 1X10 MW auxiliary turbine 4 and 1X18 MW auxiliary turbine 5 to ensure stable power generation. They are also expected to construct a separate control room and a new switchyard and transformer area.
In November 2011, the project was approved for the Project Development and Monitoring Facility (PDMF) funding support for the transaction advisory services to MWSS. The PPP Center had awarded the transaction advisory contract to the Rebel Group International BV Consortium to ensure that the project is well prepared and viable.
Aside from PDMF support, the PPP Center also provides technical advisory, project facilitation services, and capacity building support to implementing agencies and local government units in ensuring that PPP projects are developed and implemented effectively.
The MWSS project was approved by the NEDA Board, headed by the President, during their November 29, 2012 meeting. Also approved in that meeting were other PPP projects including Department of Transportation and Communication’s (DOTC) Mactan-Cebu International Airport (MCIA) New Passenger Terminal Project and Automated Fare Collection System (AFCS) Project; Department of Public Works and Highways’ (DPWH) NLEX-SLEX Connector Road Project and Cavite-Laguna Expressway Project; and Department of Education’s (DepEd) PPP for School infrastructure Project Phase II.
