Philippines to resell power plant after Suez quits
MANILA, July 7 (Reuters) - At least three investor groups will join Wednesday's state auction of a 600-MW, coal-fed Philippine power plant which French utility Suez (LYOE.PA) gave up after its condition deteriorated, a government official.
Foreign and local firms are expected to submit bids by noon on Wednesday to acquire the Calaca plant located south of the capital, said Conrad Tolentino, a spokesman for the state's Power Sector Assets and Liabilities Management Corp (PSALM).
PSALM has set a minimum contract price which it did not disclose. All bidders will have the option to tweak their offers if none of them meets the floor price, Tolentino said.
Suez unit Emerald Energy Corp made a winning bid of $786.5 million for the Calaca plant at a state auction in 2007 but decided to give back the facility in January because of its poor condition.
Philippine food-to-power conglomerate San Miguel Corp (SMC.PS) (SMCB.PS) has said it was interested to submit a bid for Calaca as it expands further into heavy industry. [ID:nMAN379317]
PSALM is selling state power assets as part of a wider power reform programme aimed at cutting state firm National Power Corp's heavy debt and making the energy sector more efficient.
Last month, PSALM rejected bids for contracts to buy the power output of two big coal-fired power plants because the offers were below the minimum price. [ID:nMAN511426] (Reporting by Manolo Serapio Jr.; Editing by Rosemarie Francisco)
