Panay Energy Development Corporation (PEDC) submitted the lowest bid for the contract to supply 70-megawatt (MW) through Manila Electric Co.’s (Meralco) Competitive Selection Process (CSP) held on November 19.

In a statement, the Third-Party Bids and Awards Committee (TPBAC) overseeing the CSP announced that PEDC offered the lowest total headline rate of PhP2.9906 per kilowatt-hour (kWh) and total levelized cost of electricity (LCOE) rate of PhP2.948 per kWh.

The offer was below the reserve prices of PhP5.0268 per kWh for the headline rate and PhP3.7898 per kWh for the LCOE rate that were set for the bidding. Other companies that submitted offers were SEM-Calaca Power Corporation (SCPC) with a PhP4.8737 per kWh headline rate and Therma Luzon, Inc. (TLI) with PhP4.7 per kWh.

Quezon Power Philippines Limited (QPPL) manifested in a letter to the TPBAC that it was withdrawing from the bidding process. SCPC and TLI submitted LCOE rates of PhP5.2894 per kWh and PhP5.1650 per kWh, respectively, which were above the LCOE reserve price.

The TPBAC said the committee’s findings were based on a Pass/Fail assessment of the qualification documents for completeness.

The TPBAC will now conduct a post-qualification evaluation to determine if it should issue a notice of award to PEDC.

“The TPBAC complied with its mandate to conduct the bid in an open and transparent manner to achieve the least cost of electricity, in accordance with the Department of Energy’s (DOE’s) Department Circular No. 2018-02-0003 on CSP,” said TPBAC Chairman Atty. Ferdinand A. Domingo.

“As a regulated entity, Meralco has conducted its business in full compliance with all rules and regulations issued by the ERC and DOE. The Terms of Reference (TOR) were reviewed and approved by the DOE, and all contracts resulting from this bidding process shall be subjected to regulatory proceedings and evaluation by the ERC,” added TPBAC Secretariat and Meralco VP and Head of Utility Economics Department, Mr. Lawrence S. Fernandez.