Wednesday, May 11, 2011

Finding a reliable power supplier for Marinduque

Photo of Poctoy White Sand Beach in Torrijos. When the current rain-showers stop it will be teemed with people escaping from the heat and from power woes.

A competitive selection process for the selection of one or more new power provider (NPP) to supply power in the island of Marinduque has been started by Marelco. The process is supposed to be designed to ensure that prospective NPP's possess the suitable level of financial and technical capability. Consideration is supposed to be given to the NPP who could provide the lowest long-term cost of power and services, environmental considerations in the local area and the most advantageous implementing schedule.

As everyone in Marinduque, and it is hoped that everyone knows by now, the solution to the Marinduque power supply problem should have been solved with the signing, six years ago (in 2005), of a Power Supply Agreement between Marelco and 3i Powergen. Commercial operation of 3i Powergen for the supply of 12.480 MW for 15 years should have commenced by February 2007, but it never materialized, no power plant was ever put up, not a semblance of any kilowatt generated.

It took five years from the signing of the PSA before Marelco decided to rescind the contract, but only after constant brownouts compelled consumers to delay payment of their power bills making its financial situation worse, and after a huge rally in Boac left the electric cooperative "traumatized".

In accordance with DOE rules and procedures for private sector participation in NPC-SPUG areas, distribution utilities operating in such areas have the option to manage the competitive selection process by itself, instead of engaging the services of a transaction advisor as was done before. Marelco has decided to take this option.


To the Light.

"There is no such thing as darkness;only a failure to see". ~
Malcolm Muggeridge


Marelco's invitation to Bidders as it appears in its annual report released last Saturday, May 7, is reproduced below:


Marinduque Electric Cooperative, Inc.
(MARELCO)
Ihatub, Boac, Marinduque

INVITATION TO APPLY FOR ELIGIBILITY AND TO BID

The Marinduque Electric Cooperative, Inc. (MARELCO) as implementing agency through its Special Bids and Awards Committee (SBAC) invites Bidders to apply for eligibility and to participate in the Bidding for the Supply of a brand new Modular Type Diesel Hybrid Power Plant with a capacity to initially deliver more or less 3,000,000 kwh per month to the MARELCO system.

Prospective Bidders should possess the required technical expertise and adequate financial resources to deliver, install and commission the Power Plant as indicated in the Terms of Reference. The SBAC shall use non-discretionary pass/fail criteria in the Eligibility Check/Screening as well as the Preliminary Examination of Bids. The SBAC will conduct post qualification of the lowest calculated and responsive bid.

The complete schedule of activities in conformity to the provisions of R.A. 9184, and its implementing rules and regulations and the ERC Res. No. 11 series of 2005, is listed as follows:

Receipt from prospective Bidders of Letter of
Intent (LOI) with Application for Eligibility - May 2, 2011
Issuance of Bid Documents - May 19, 2011
Pre-Qualification Evaluation - May 31, 2011
Pre-bid Conference - June 9, 2011
Receipt of Bids from Bidders - June 20, 2011
Opening of Bids & Comparison with Best New
Entrant Rate (BNER) - July 8, 2011
Negotiation and Award of PSA - August 9, 2011
Award of Contracts/Issuance of NTP - September 5, 2011

The SBAC will issue to Prospective Bidders through the SBAC Secretariat the Eligibility Forms & Bidding Documents upon submission of Letter of Intent (LOI) and upon payment of non-refundable amount of Thirty Thousand Pesos Only (Php 30,000.00). Prospective Bidders shall submit the Eligibility Requirements & Bid Documents to the SBAC Secretariat, at Marelco Main Office, Ihatub, Boac, Marinduque on the date and time specified above.

All bids must be accompanied by Bid Security in any of the following forms:

1. Cash/Manager’s Check/Certified Check in the amount of Php 8,726,000.00 equivalent to the estimated 1% cost of the Power Plant.

2. Bank Guarantee in the amount of Php 13,089,000.00 equivalent to the estimated cost 1% of the Power Plant posted in the account of MARELCO.

MARELCO reserves the righ to reject any or all bids, waive any formality or technicaiity therein, accept any bid deemed most advantageous to MARELCO, or annul the bidding process at any time prior to award without incurring any liability to any bidder or party. Further, MARELCO assumes no obligation to compensate any bidder or party for any loss or expense incurred in the preparation of the bid or participation in the bidding process.

Inquiries on any details or particulars related to the subject of this notice may be made at the office of SBAC, at MARELCO Main Office in Ihatub, Boac, Maarinduque.

(Signed)
THELMA L. MAYANGITAN
Officer-in-Charge

Susong Dalaga Hill

Susong Dalaga Hill
Susong Dalaga Hill from Bagtasan isthmus

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