TeaM Energy Philippines, a joint venture of Japanese firms Tokyo Electric and Marubeni Corporation, has its sights set as prospective independent power producer administrator (IPPA) for the 345-megawatt San Roque multi-purpose power project in the next round of auction set by the Power Sector Assets and Liabilities Management Corporation.

“We are interested in San Roque plant,” was the brief answer given to media by TeaM Energy president Federico E. Puno when asked about the company’s interest in the on-going privatization of the IPP contracts.

He enthused though that they want to evaluate first the model or how PSALM will package the IPPA for the hydro plants since this may entail a more complicated process, as compared to the IPPA appointment for the coal plants.

TeaM Energy’s affiliate firm, Marubeni Corporation is major equity holder and operator of the $1.2-billion San Roque multi-purpose hydropower project. Apart from power generation, the project’s other components are irrigation and flood control.

While an interested party may take preference over a specific plant, the bidding terms set by PSALM require that a bidder will need to submit offers for the three plants in the package – including
the 70-MW Bakun and 30-MW Benguet hydro power plants.

PSALM indicated that “a bidder must submit a bid for each of the San Roque contracted capacity, Bakun contracted capacity and Benguet contracted capacity.” The basis for disqualification of bidders, the firm said, is if they would just be submitting any one or any two bids; or if they post joint bids for the IPPAs.

“A bidder can be declared the winning bidder for all or any one of the San Roque contracted capacity, Bakun contracted capacity and Benguet contracted capacity,” the company-seller added.

For the San Roque plant, the build-operate-transfer (BOT) agreement inked by state-owned National Power Corporation (NPC) with San Roque Power Corporation (SRPC) stretches over 25 years. The other equity holder in SRPC is Kansai Electric, another Japanese firm.

The BoT contract stipulated that the first four years of its commercial operation, the nominated capacity of the San Roque plant will just be at 85-MW; and this will go higher to 95-MW at years 5 to 10. The plant started commercial operation in May 2003.

The agreed capacity dispatch will further be ramped up to 110 MW at plant’s 11 to 14 years of operations; and eventually at 115-MW at years 15 to 25.