Bloomberg reported that the Philippines will hold an auction to sell a 600 MW coal fired power plant that GDF Suez SA returned to the government in January citing the generator’s poor condition.

Mr Conrad Tolentino a spokesman at Power Sector Assets and Liabilities Management Corp, the agency in charge of selling state power assets said at least three investors may bid for Calaca plant south of the capital.

Power Sector on January 26th without elaborating said that Paris based GDF Suez won an auction in October 2007 for the plant with a bid of USD 787 million, beating two other investors. GDF Suez decided to terminate the purchase due to the deterioration of the power plant.

Power Sector is selling the assets of state-owned National Power Corp. to raise funds to pay the utility’s debts. Including the auction that GDF Suez won, the government has thrice failed to privatize Calaca plant because of a lack of bidders.

(Sourced from Bloomberg)