San Miguel appears poised to secure the contract with Meralco
Limay Power Inc., a subsidiary of San Miguel, has emerged as the top contender for Manila Electric Co.’s (Meralco) 400-megawatt (MW) interim supply contract. Their offer, at P6.2798 per kilowatt-hour (kWh) for the entire 400 MW, outshined the bid from Masinloc Power Co. Ltd., another San Miguel-owned company, which proposed P6.2957/kWh for 195 MW of capacity. This auction attracted only two bidders, both under San Miguel Global Power Holdings Corp., as a third party expressed interest but did not submit an offer, according to Meralco.
Both bids met the P6.3512/kWh reserve price and fulfilled other criteria set by the bids and awards committee. Following this, a post-qualification evaluation will ensue, potentially leading to a recommendation for Meralco’s board to grant the contract to Limay Power.
This auction followed a previous unsuccessful bidding for a 260-MW supply agreement geared towards addressing an anticipated spike in demand during the summer. Two companies, Vivant Corp.’s 1590 Energy Corp. and San Miguel Global Power’s San Roque Hydropower Inc., reportedly withdrew their expressions of interest.
The 260-MW supply deal was anticipated to remain effective until July of the current year, while the 400 MW contract will extend until February of the following year. Meralco intends to seek approval from the Energy department for another auction to fill the 260 MW gap.
On the stock market, Meralco’s share price experienced a decline of P3.60, or 0.97 percent, to P369.40 on Tuesday, coinciding with a 0.45-percent drop in the benchmark Philippine Stock Exchange index.
Business News: San Miguel appears poised to secure the contract with Meralco
