Philippines' Napocor to bid out one million tons coal supply: Report

The Philippines National Power Corp. (Napocor) is expected to auction off on Nov. 25 and Dec. 2 coal supply contracts worth 39.32 million dollars, representing a 7.36-million-dollar increase in the budget limit, Manila-based INQ7money.net reported Thursday.

Up for bidding are three contracts to deliver a total of 975,000 metric tons of coal for a 1,200-megawatt power plant in Sual town in the northern province of Pangasinan, a 600-megawatt plant in Masinloc town in Zambales province, west of Manila, and a 735-megawatt plant in Pagbilao town in Quezon province.

A contract provides for 325,000 metric tons of coal for each plant.

The auctions were originally set for Oct. 21 and Oct. 22, but Napocor postponed them to give time to a team sent to China to appraise the shipping and production situations in the region.

The mission investigated how the current shortage in supply and available cargo ships could affect Napocor's coal procurement.

A Napocor official said the price ceiling for each contract was raised in view of costs that had increased because of the shortage.

For the Sual and Masinloc contracts, Napocor raised the budget to 13.65 million dollars each, from 10.9 million dollars.

It raised the budget for the Pagbilao contract to 12.02 million dollars from 10.15 million dollars.

Citing the worldwide shortage in sea-faring haulers, a supplier has asked for an increase in freight payments for previously committed cargoes by about 175 million pesos. (*)