MANILA, Philippines - State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has pushed back the bidding for its four power barges to give more time for interested firms to conduct due diligence.
The submission of bids was moved more than a month to May 16 from the original April 13 deadline.
“This is principally for the purpose of giving them (private firms) ample time to come up with a more responsive bid for the assets,” PSALM said in a statement.
PSALM president and chief executive Emmanuel R. Ledesma Jr. said the bidders requested the extension given ongoing due diligence.
Eleven firms have earlier expressed interest in the bidding for three packages involving four power barges. Package 1 combines Power Barges (PB) 101 and 102, package 2 includes PB 103 and package 3 covers PB 104.
The power barges are movable and can be relocated anywhere with adequate mooring structures.
PSALM said it issued a supplemental bid bulletin which set the deadline for the filing of a request to bid as a consortium to 5 p.m. on March 28.
Ledesma said they have set a requirement for each bidder to submit an offer for each of the three packages comprising the sale of the power barges.
Under the bidding rules for the power barges, winning bidders would have to immediately transfer these power facilities in Mindanao and would have to stay there until 2014.
PSALM initially planned to auction off the power barges before the end of last year but was delayed due to a review.
In February, PSALM opened the bidding process for the four power barges of the National Power Corp. (Napocor) that will augment the supply in Mindanao.
A two-envelope bidding system will be adopted. Interested parties will be required to post a bid security of P11 million for Package 1, P5.5 million for Package 2 and P5.5 million for Package 3 in the form of an irrevocable letter of credit.
PSALM’s preliminary requirements include the submission of a confidentiality agreement and the payment of a non-refundable participation fee of $3,000.
Designed as base-load plants, PB 101, 102, 103 and 104 are nominal 32-megawatt (MW) barge-mounted, bunker-fired diesel generating power stations that consist of four identical Hitachi-Sulzer diesel generator units rated at eight MW each. Napocor bought the power barges from Japanese firm Hitachi Zosen Corp.
Since they began operation, these barges had been moved to various locations to meet technical requirements – usually a power shortage – or to provide reactive power support to improve voltage regulation at the end of very long transmission circuits.