01 Feb 2012
The Power Sector Assets and Liabilities Management (PSALM) Corporation continues the government's power privatization program with the issuance of the Invitation to Bid (ITB) for the auction of the diesel-fired Power Barges 101, 102, 103 and 104 capable of generating 32 megawatts (MW) each.
According to PSALM President and Chief Executive Officer Emmanuel R. Ledesma Jr., the bidding of the power barges continues the privatization efforts of PSALM, which will ultimately lower the universal charge to be imposed on consumers as provided under the Electric Power Industry Reform Act (EPIRA). "Although the privatization was temporarily put on hold at the start of the Aquino administration, PSALM is again committed to immediately dispose of our remaining assets pursuant to the EPIRA," Ledesma said.
In the ITB published in local newspapers last Monday (30 January 2012), PSALM stated that it is now accepting Letters of Interest from prospective investors for the four power barges until 14 February 2012. The bid covers the generating assets, which are being offered on an "as is, where is" basis, structures and improvements, spare parts, and general plant equipment of the power barges.
The four facilities will be bundled in three packages, with Package 1 to include PB 101 and 102, Package 2 to include PB 103, and Package 3 to include PB 104.
As a prerequisite to the issuance of the bidding package, interested parties are required to execute a Confidentiality Agreement and Undertaking with PSALM and pay a non-refundable participation fee of USD3,000.00 no later than 15 February.
PSALM will hold a Pre-bid Conference for interested bidders on 29 February 2012 at its Makati City office. The bidding will be held in April 2012.
The PSALM Board has approved the sale of the power barges with the condition that they will be transferred to Mindanao to augment the power supply in the region. The transfer will occur after the power situation stabilizes in the Visayas where three of the power barges are currently moored. All transfer costs will be on the account of the winning bidder.
Commissioned in 1981, PB 101 and PB 102 are currently moored at Bo. Obrero, Iloilo City, while PB 103 and 104, which were commissioned in 1985, are moored at Botongon, Estancia, Iloilo, and at the Holcim Compound, Ilang, Davao City, respectively.
The power barges are movable and can be relocated anywhere with adequate mooring structures. Designed as base-load plants, the structures are barge-mounted, bunker-fired diesel generating power stations that consist of four identical Hitachi-Sulzer diesel generator units rated at 8 MW each.
The National Power Corporation bought the power barges from Japanese firm Hitachi Zosen Corporation. These barges were used to help ease a severe power shortage in the Philippines, providing the required support in the Visayas and Mindanao regions.
Strategic Communications and Partnership Division |