THE Manila Electric Co. (Meralco) will resort to negotiated procurement of 180 megawatts (MW) of baseload capacity after the second round of competitive selection process (CSP) failed anew.
Meralco said the Third-Party Bids and Awards Committee (TPBAC) informed the utility firm that it did not receive any Expression of Interest (EOI) from a prospective bidder by the April 29 deadline.
Pursuant to the Revised CSP Rules, a bidding is declared a failure if the TPBAC received less than two EOIs.
The TPBAC further said that since there are no outstanding disputes on the first and second rounds of CSP for the contract, Meralco may enter into direct negotiation for its 180MW contract capacity requirement, also as provided by the revised CSP rules.
'We are now considering all our options, including negotiating with a potential supplier, to cover the 180-MW supply requirement from May to July 2022,' said Meralco Head of Regulatory Management Office Jose Ronald V. Valles.
The CSP was intended to augment available supply during the hot dry season months and to cover for the output of plants that are affected by Malampaya facility's continued inability to supply adequate natural gas fuel.
Valles said the direct negotiations have started. 'We are now negotiating with a supplier which can supply that requirement at reasonable price. Yes, we are already doing the negotiations. It will be quick because we need the capacity this May.'
Under the approved terms of reference for the CSP, Meralco proposed that the required contract period runs from May 26 to July 25 this year, which may be extended for up to five months, upon mutual agreement by the parties. The minimum offered capacity per bidder is at least 50MW.
The first competitive auction last March 31 was declared a failure because there was no expression of interest received by the TPBAC.