The sustained interest of investors is one major factor that prompted the Power Sector Assets and Liabilities Management Corporation (PSALM) to finally schedule a pre-election bidding for the 246-megawatt Angat hydropower plant.

In the tender notice issued by PSALM, it set April 28, 2010 as bid opening date, while submission of letters of interest (LOIs) are solicited until the close of office hours this January 27. Pre-bid conference for prospective bidders is slated February 17, while due diligence activities kicks off January 12.

“The interested parties must also execute a Confidentiality Agreement and an Undertaking with PSALM, and pay a non-refundable participation fee of USD2,500 not later than 5 p.m. of 29 January 2010 as a prerequisite to the issuance of the bidding package,” PSALM stipulated further in the bid notice.

This early, industry watchers opined that the so-called ‘usual suspects’ will likely be vying for the Angat plant’s acquisition. While this facility’s privatization has long been planned, it is only this time that PSALM firms up the auction date because of protocols needing to be fixed on the dam’s water use especially since it is the water supply source for Metro Manila and neighboring provinces.

PSALM acting vice president for asset management and electricity trading Conrad S. Tolentino offered a more cautions assessment on the bidders’ interest. “We’ll know for sure when we start getting letters of interest,” he stressed.

Investor-groups which so far advanced words on their respective interests in the Angat facility are the joint venture of Norwegian firm SN Power and local partner Aboitiz Power, as well as the Energy Development Corporation (EDC) of the Lopez group.

SN Power said, its tie-up with the Aboitiz group, will carry on as they continue scouring for investment prospects including plans to bid for the Angat plant.

“The relationship is strong and that there is a continuing commitment to explore opportunities together,” the Norwegian partner said.

The buyer of the Angat plant will be required to honor the prescribed protocols on water usage. The pecking order of things gives priority to domestic water use, followed by irrigation while power generation only ranks third.

The facility, located in Norzagaray, Bulacan, has four main units with 50-MW capacity each commissioned in 1967 to 1968.

It also has five auxiliary units augmenting its operations, three of which have 6.0-MW capacity each, while the other two have installed capacities of 10 and 18 megawatts.