Negotiated sale for Power Barges 101-104 fails

17 Aug 2012

Negotiations between the Power Sector Assets and Liabilities Management (PSALM) Corporation and the Trans-Asia Oil and Energy Development Corporation for the sale of Power Barges (PB) 101, 102, 103 and 104 were declared a failure after Trans-Asia declined to meet the reserve price set by the PSALM Board for the power facilities.

Trans-Asia, an affiliate of the Phinma Group, was the lone bidder that submitted the required documents for the power barges in the second round of bidding conducted last Friday (17 August) at the PSALM offices in Makati City.

In accordance with its bidding procedures, PSALM declared a failure of bidding as only one bidder participated in the exercise. With the failure, PSALM exercised its option to enter into a negotiated sale with Trans-Asia pursuant to the authority given by the PSALM Board.

In the negotiation stage, Trans-Asia's bids for the three packages were opened but were found to have not met the reserve price for all the bid packages. The packages are Package 1, which combines PB Nos. 101 and 102; Package 2, which consists of PB 103; and Package 3, which includes PB 104.

Pursuant to the negotiation procedures adopted by PSALM, Trans-Asia was given the option to match the reserve price. Trans-Asia, however, opted not to meet the reserve price for the packages.

The PSALM Bids and Awards Committee will discuss with the PSALM Board the next steps to be taken in the privatization of the four power barges.

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

Under PSALM's bidding parameters, the three barges moored in the Visayas are required to be transferred and operated in Mindanao to address the power situation in the region.

Strategic Communications and Partnership Division
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