Energy dep’t to award hydro, geothermal contracts in April

Department of Energy (DoE)

THE Department of Energy (DoE) targets to award the contacts for geothermal and hydropower projects under the third round of its open competitive selection and bidding process, or OCSP3, by April 14, it said in a detailed timeline released on Tuesday.

“Aside from the timelines, we were able to provide details of the Pre-Determined Areas or Offered Areas and the guidelines and procedures including evaluation criteria,” Mylene C. Capongcol, director of the DoE’s Renewable Energy Management Bureau (REMB) said in an e-mail to BusinessWorld.

The renewable energy (RE) contracts for OCSP3 are expected to be signed by Energy Secretary Alfonso G. Cusi in the second week of April.

The launching and pre-submission of bids started on Tuesday, marking the beginning of the selection and bidding process.

The criteria for evaluation, as presented in the launch and pre-submission conference on Tuesday, said that RE applicants must submit legal documents, a work program, technical and financial qualifications.

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Some of these were given a weight percentage. The work program — which consists of a literature review and resource exploration, strategies and methodologies — made up 40% of the evaluation.

The technical qualifications, which include details about the company’s performance, qualifications and technical resources, stood at 20%. Meanwhile, the financial qualifications, which consist of an available working capital, sources of current funds and other sources of future funds, took up 40%. Legal documents are on a pass or fail basis.

The DoE also listed a number of requirements that aspirants from different sectors must submit before moving to the opening of bids on Feb. 15.

Individuals or proprietors are required to furnish the agency with a Philippine Statistics Authority-issued birth certificate, business permit, a Department of Trade and Industry (DTI) registration if possible and a special power of attorney to negotiate and enter in an RE contract with the DoE.

Cooperations, joint ventures, consortiums, and cooperatives must submit by-laws and articles of incorporation, a board resolution authorizing a representative to negotiate and enter into an RE contract with the DoE, an updated general information sheet of the firm and its corporate stockholders, a business permit and organization chart.

Local government units are required to submit a council resolution approving the proposed project and authorizing its representative to negotiate and enter into an RE contract with the DoE.

Jeffrey G. Sayco, science research specialist at the DoE’s Geothermal Energy Management Division, said that applicants must also submit a passport ID or any valid government-issued ID of the authorized representative.

The technical requirements for interested bidders include: a work program, the company’s experience or track record, curriculum vitae of key management and personnel, curriculum vitae of technical consultants, and the list of existing company-owned and leased equipment.

The DoE also listed down the financial requirements that prospective bidders needed to submit. These include the latest annual report and/or audited financial statements (FS) for the last two years from filing date, a bank certificate to substantiate the balance in the FS, and projected cash flow statements for the next two years.

The agency said that those who wish to invest in geothermal and large hydro resources should submit projected cash flow statements for the next five years.

OCSP3 allows for 100% full foreign ownership for large-scale geothermal projects. Earlier, DoE-REMB’s Ms. Capongcol said that three out of five predetermined geothermal areas were open to full foreign ownership. These are Mt. Labo, Daklan, and Puting Lupa geothermal projects, which have a total potential capacity of 74 megawatts.

Last month, Mr. Cusi said that the agency had yet to receive applications from foreign investors interested in geothermal and biomass projects. — Angelica Y. Yang

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