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Wednesday, 03 June 09
NAPOCOR EXTENDS COAL TENDER FOR SOLE BIDDER - ABS CBNNEWS

National Power Corp. (Napocor), the top Philippine electricity producer, has given the lone bidder at a tender for 195,000 tons of coal more time to sort out its bid, a senior company official said.

Indonesian firm PT Delta Minerals International was the only company that submitted an offer to supply 195,000 tons of steam coal to Napocor's Sual power plant, but Napocor did not accept the bid because of a technicality.

Delta Minerals' Philippine partner, Woodridge Properties Inc., did not submit eligibility documents as required of all bidders, said Edmund Anguluan, who heads the bidding committee.

"I cannot categorically say that it is a failed bidding. We're giving them three days to file a motion for reconsideration," Anguluan told reporters.

Napocor was looking to buy the coal at $73.86 a ton, including cost and freight. The coal, in three lots of 65,000 tons each, is scheduled for delivery from Sept. 24 to Nov. 26.

Last month, Napocor reconsidered a bid by PNOC-Exploration Corp. for 100,000 tons of local blended coal after the Philippine oil and gas explorer submitted a fresh bid.

Anguluan said Napocor cannot afford to run out of coal for its power generation plants but added the company still has enough stocks at the moment.

The power firm failed to buy 195,000 tons of coal for its Pagbilao power station and another 195,000 tons of coal, also for its Sual plant, at two separate tenders last month with prospective suppliers turned off by the low budget.

Napocor has said it needs to import nearly 3.5 million tons of coal this year, and has so far awarded 1.365 million tons to several Indonesian suppliers.

Australian thermal coal prices, a benchmark for Asia, rose to a fresh three-month high of $66.31 a ton last week, supported by gains in crude oil prices and Chinese demand.

Source: http://www.abs-cbnnews.com/business/06/03/09/napocor-extends-coal-tender-sole-bidder



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