The Manila Thermal Power Plant (MTPP) is a decommissioned

power plant A power station, also referred to as a power plant and sometimes generating station or generating plant, is an industrial facility for the electricity generation, generation of electric power. Power stations are generally connected to an el ...

found on Isla de Provisor, in the

Paco Paco is a Spanish nickname for Francisco. According to folk etymology, the nickname has its origins in Saint Francis of Assisi, who was the father of the Franciscan order; his name was written in Latin by the order as ''Pater Communitatis'' (fath ...

District of

Manila Manila ( , ; fil, Maynila, ), officially the City of Manila ( fil, Lungsod ng Maynila, ), is the capital of the Philippines, and its second-most populous city. It is highly urbanized and, as of 2019, was the world's most densely populate ...

, in the

Philippines The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no), * bik, Republika kan Filipinas * ceb, Republika sa Pilipinas * cbk, República de Filipinas * hil, Republ ...

. Located along the

Pasig River The Pasig River ( fil, Ilog Pasig) is a water body in the Philippines that connects Laguna de Bay to Manila Bay. Stretching for , it bisects the Philippine capital of Manila and its surrounding urban area into northern and southern halves. Its ...

, it was sold to the

Malaysia Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...

n firm Gagasan Steel, Inc. by Power Sector Assets and Liabilities Management Corporation (PSALM), an agency of the Philippine government tasked with privatising underperforming power assets.

History

The power plant was composed of two Heavy Oil (bunker C) fired units: Unit One was commissioned on September 1, 1965, and Unit Two was commissioned on October 15, 1966. Owned by the

National Power Corporation The National Power Corporation ( fil, Pambansang Korporasyon sa Elektrisidad, also known as Napocor, NPC or National Power), is a Philippine government-owned and controlled corporation that is mandated to provide electricity to all rural areas o ...

, each unit can produce up to 100 megawatts. The power plant substantially contributed to the

Luzon Luzon (; ) is the largest and most populous island in the Philippines. Located in the northern portion of the Philippines archipelago, it is the economic and political center of the nation, being home to the country's capital city, Manila, as ...

Grid until they were both decommissioned in January 2000.

Auction

After decommissioned, MTTP was auctioned off by PSALM, as was the two-hectare plot of land it stands on. The government had been trying to sell its power assets to help boost revenue and encourage private investments in power generation to create a competitive electricity market and eventually lower power costs. PSALM expected MTPP's potential bidders to come from the construction and steel sectors. On its first try in the first quarter of 2005, the auction failed due to lack of investor interest. A second try, in the last quarter of 2006, similarly failed. On its third attempt in February 2008, the government decided to include the land on which the power plant stood to increase interest; the property is near SM City Manila and other commercial centers. However, it failed again since

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-based JC Ethanol and Metal Trading Corp. offered a price lower than what the government was willing to accept. Malaysia's Gagasan Steel did not meet technical requirements, and was thus disqualified from the bidding. In April 2008, PSALM entered into negotiated bid and completed negotiations with Gagasan Steel to acquire MTPP for

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2.5 million. The auction did not include the underlying land because foreign entities are legally banned from owning land in the Philippines. PSALM issued Gagasan the notice of award and certificate of effectivity after the Malaysian firm gave PSALM a performance bond of US$1.253 million. Gagasan will be responsible for the dismantling of the facilities and site clean-up, for six months subject to extension.

References

{{coord missing, Philippines Former buildings and structures in Manila Coal-fired power stations in the Philippines Former coal-fired power stations Energy infrastructure completed in 1965 Former power stations in the Philippines