PSALM seeks bidders for engine oil supply

Manila, Philippines - State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is seeking bids for the supply of P59.56 million worth of engine lubricating oil to four state-owned power barges.

“PSALM invites bids for the supply and delivery of engine lubricating oil to PSALM Power Barges Nos. 101, 102, 103 and 104,” the company said in a public notice.

Specifically, PB 101, 102 and 103 require 120,000 liters of engine lubricating oil.

Using its 2012 corporate operating budget, PSALM will pay P13.199 million each for the oil for PB 101 and 102. It also allotted P13.226 million for the oil needs of PB 103.

Approved budget for the supply and delivery of 180,000 liters of engine lubricating oil is P19.94 million.

“Bids received in excess of the approved budget for the contract shall be automatically rejected at bid opening,” PSALM said.

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.

Commissioned in 1981, PB 101 and 102 are stationed at Brgy. Obrero in Iloilo City while PB 103 and 104, which began operation in 1985, are moored in Botongon, Estancia, Iloilo and at the Holcim Compound, Ilang, Davao City, respectively.

PSALM said the bidding is restricted to Filipino citizens/sole proprietorships and organizations with at least 60 percent stake held by Filipinos.

A pre-bid conference is scheduled on July 27, with the submission and opening of bids set on Aug. 8.

The PSALM, formed by the 2001 Electric Power Industry Reform Act, is the state firm in charge of privatizing government power assets as well as managing National Power Corp.’s power plants and debt. It buys the fuel requirements of state-owned power plants.

In May, PSALM’s bidding for PB 101, 102, 103 and 104 – the firm’s first privatization effort this year – failed as only one of seven qualified bidders submitted an offer. The new round of the privatization is ongoing, with bid opening scheduled on Aug.15.

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.