Calaca coal-fired power plant

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In December 2009, the Power Sector Assets and Liabilities Management Corporation (PSALM) finalized the sale of the 600MW Calaca coal-fired power plant in Batangas province for US$361.7 million to DMCI Holdings Inc. as it settled down 40% of its bidding price (US$150.79 million). In July 2009, DMCI Holdings was declared the highest bidder in the negotiated sale (negotiated sale is a type of competitive bidding where PSALM could bid out the asset, even if there is only one qualified bidder, and would award the facility to the highest bidder who meets the government’s reserve price, different from direct negotiation) conducted by the Power Sector Assets and Liabilities Management Corporation (PSALM) in June 2009. The bidding was conducted in the form of competitive bidding with total number of two bidders. The other bidder was Banpu Power Ltd. As for a brief history of the bidding for the plant, the government first auctioned Calaca in May 2004, but the bidding failed after two of three bidders backed out. The plant was again auctioned in April 2006 but again failed after the two bidders (DMCI Holdings, Inc. and First Gen Luzon Power Corp.) tendered offers below the government's reserve price of US$288 million. It was auctioned early 2009 and the winning bidder Emerald Energy Corp., a subsidiary of French utility Suez International, terminated the purchase of the Calaca plant claiming its rapid deterioration. Emerald Energy had offered US$787 million for Calaca. As of July 2009, DMCI planned to spend US$120 million over the next two to three years for the plant's rehabilitation. Detailed information on financing was not publicly available. "In a negotiated sale, PSALM could bid out the asset, even if there is only one qualified bidder, and would award the facility to the highest bidder who meets the government’s reserve price." - PSALM