PSALM to start talks on sale of power barges

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM) is set to start negotiations with the Phinma Group’s Trans-Asia Oil & Energy Corp. for the privatization of Power Barges 101, 102 and 103.

PSALM president Emmanuel Ledesma Jr. said that for the three power barges, the government corporation has already received the Office of the Government Corporate Counsel opinion, which said that PSALM can negotiate with the second highest ranking bidder.

“For PB 101-103, pursuant to the  OGCC opinion, we are looking at negotiating with the second highest ranking bidder within the terms provided in the COA (Commission on Audit) guidelines,” he said.

SPC Island Power, a unit of SPC Power Corp. emerged as the highest bidder for PB 103 with P545.89 million during a bidding last year but the company decided to terminate its asset purchase agreement with the government after PB 103 suffered severe damage from Super Typhoon Yolanda last year.

Trans-Asia, the power unit of the Phinma Group is the second highest bidder of the barges, with an offer of P370.52 million.

PSALM sought for an OGCC on whether it could negotiate with the second winning bidder.

“As soon as I get board approval on the matter, we will proceed with the negotiation,” Ledesma said.

These power barges 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.  PBs 101-102 are currently stationed at Bo. Obrero in Iloilo City and were commissioned in 1981.  PBs 103 and 104 are moored in Botongon, Estancia, Iloilo and at the Holcim Compound, Ilang, Davao City, respectively and began operating in 1985.

The government offered the barges in two packages consisting of PB 101, 102 and 103 for the first package and PB 104 as the second package.

Bidding for PB 104 was declared a failure because bidders did not meet the requirements, according to PSALM.