INVITATION TO PRE-QUALIFY AND AND TO SUBMIT PROPOSALS

The Subic Bay Metropolitan Authority (SBMA) entered into a Ground Lease Agreement with the National Power Corporation over approximately Ten (10) hectares of land. The NPC then constructed a 116 MW Diesel Generator Power Plant on the land thru a Build, Operate, Transfer Agreement with Enron Power Corporation. The Power Plant was commissioned on February 22, 1994.

The Ground Lease Agreement between the SBMA and NPC as well as the BOT Agreement between NPC and Enron both expired on February 23, 2009. Thus, as of March 31, 2009, the NPC fully turned over the 116 MW Diesel Generator Power Plant to the SBMA.

The SBMA shall pursue the short term operation and maintenance of this existing Power Plant while the re-classification of the Land Use of the area from Utilities to Mixed Use Commercial/Residential/Leisure takes off. Towards this end, the SBMA wishes to lease out on an "AS IS, WHERE IS" basis, the land and the facilities within the Subic Bay Power Plant compound by inviting interested proponents to pre-qualify for the Project. Only pre-qualified proponents shall be invited to submit proposals for the lease, operation and maintenance of the land and facilities comprising the 116 MW Diesel Generator Power Plant. Proposals received shall be subjected to competitive evaluation in accordance with set criteria under the Terms of Reference.

Name of Project : Lease, Operation and Maintenance of the Subic Diesel Power Plant (SDPP)
Project Location : Causeway Extension, Subic Bay Freeport Zone
Project Description : The project involves the selection of a lessee(s) for the short term operation and maintenance of SDPP.

Minimum Pre-Qualification Requirements:

1. For Local Firms:

i. Letter of Intent duly signed by the authorized representative of the proponent accompanied by a business profile stating the proponent's corporate structure and current business activities.

ii. Department of Trade and Industry (DTI) business registration, or Article of Incorporation or Articles of Partnership from the Securities and Exchange Commission. If the proponent is a local corporation, its authorized capital stock must not be less than Two Hundred Million Pesos (Php200,000,000.00) or its equivalent in foreign currency, at least seventy percent (70%) of which stock is fully paid up.

iii. Valid and current Mayor's Permit/Municipal License.

iv. Taxpayer's Identification Number (TIN) and BIR Tax Clearance Certificate.

v. Statement under oath of the proponent that it is not "blacklisted or barred from bidding by the Government or non-inclusion in the Consolidated Blacklisting Report issued by the Government Procurement Policy Board (GPPB).

vi. Social Security System (SSS) clearance.

vii. Department of Labor and Employment (DOLE) Clearance.

viii. Joint Venture Agreement (for joint venture of local firms).

ix. Statement under oath or Audited Financial Statements certifying / evidencing that the proponent has net assets of not less than Ten Million United States Dollars (US$10,000,000.00).

x. Evidence of authority of the signing official.

xi. If the proponent or any of its members, management or shareholders are SBF-registered enterprises, a certification from the SBMA Deputy Administrator for Finance that such entity has no arrears or as not defaulted with its financial obligations with SBMA.

2. For Foreign Firms

Submission of the equivalents of all the required eligibility documents for local firms insofar as may be applicable, duly authenticated by the appropriate official of the Embassy/Consulate of the Philippines in the bidder's country. The authenticated documents must be in the English language.

3. For Joint Ventures or Consortiums whether Local or Foreign in addition to 1 and 2 above.

i. Affidavit of Undertaking that, if awarded the Facilities Lease Agreement for the SDPP, the members of the joint venture or consortium shall bind themselves jointly, severally and solidarily in the performance of the obligations under the said agreement and that they register a joint venture or consortium corporation in the Philippine in accordance with pertinent nationality requirements; and

ii. Organizational Business Plan which shall state the structure of the joint venture or consortium, the lead institution, and the qualification and specific roles of each of its members in relation to the management and operation of the SDPP.

A member of a consortium or joint venture is not allowed to be a member of another consortium or joint venture that is also submitting a proposal.

Terms of Reference for the submission of proposals are available at the Office of the Administrator and Chief Executive Officer, Bldg. 229, Waterfront Road, Subic Bay Freeport Zone (SBFZ) on April 14, 2010 to May 7, 2010 from 9:00 a.m. to 5:00 p.m. during the same period aforementioned, the Subic Bay Power Plant shall be open for inspection upon prior coordination with the SBMA Engineering Department at telephone number (6347) 252-4713.

For inquiries, please contact the Office of the Senior Deputy Administrator for Support Services at telephone number (6347) 252-4885, facsimile (6347) 252-4040 or visit our website at http://www.sbma.com.

SBMA reserves the right to reject any or all proposals, waive any minor deviations, and award the contract for the Project to the proponent whose financial proposal is the highest among the qualified proponents, and whose technical proposal is complying.

The Subic Bay Metropolitan Authority (SBMA) assumes no responsibility whatsoever to compensate or indemnify any proponent for any expenses incurred in the preparation of the proposal.

ARMAND C. ARREZA
Administrator/CEO