14 December 2012, Malaya Business Insight
The Aquino administration has rolled out its first hydro-electric power project under the Public-Private Partnership (PPP) Program.
The Metropolitan Waterworks and Sewerage System (MWSS) issued the Invitation to Prequalify and Bid for the rehabilitation, operation and, maintenance of the auxiliary turbines 4 and 5 installed in the Angat Hydro-electric Power Plant Complex in San Lorenzo, Norzagaray, Bulacan.
The PPP Center said that the estimated P1.155 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 projected 10,450 MW additional capacity requirement based on the Power Supply and Demand Outlook for 2012-2030,” the PPP Center said.
The agency said that the private partner will 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,” the PPP Center said.
The agency said that a fire incident in May 2012 has damaged auxiliary turbine 5, affecting the shared transformer of both auxiliary turbines making them unusable.
The project was approved by the NEDA Board, headed by the President, during their November 29, 2012 meeting.
In November last year the project was approved for the Project Development and Monitoring Facility 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.
For 2012, the Aquino administration was able to bid out the $389 million School Infrastructure Project Phase I and was awarded to the consortiums of Citicore Holdings Investment, Inc.-Megawide Construction Corp., Inc. and BF Corp.-Riverbanks Development Corporation.
Other projects which have been rolled out are the $377.6 million NAIA Expressway Phase II Project, the $1.25 billion LRT Line 1 Cavite Extension and Operations and Maintenance Project, and the $135.5 million Modernization of the Philippine Orthopedic Center.
The PPP Center hopes to roll out eight projects before the year ends.
