8 firms eyeing power barges - PSALM

07 Aug 2013

Under the revised terms of bidding, the Power Sector Assets and Liabilities Management (PSALM) Corporation reported that the sale of Power Barges (PBs) 101, 102, 103 and 104 has drawn eight (8) interested parties.

As stated in its published invitation, PSALM required interested parties to submit a Letter of Interest not later than 5:00 p.m. on 01 August 2013, pay a nonrefundable participation fee of PhP120,000, and execute and submit a Confidentiality Agreement and Undertaking not later than 5 p.m. of 02 August 2013.

With the lapse of the deadlines, all eight (8) prospective bidders - one (1) foreign and seven (7) local firms - have satisfied the initial requirements.

PSALM said the lone foreign investor is the American Capital Energy & Infrastructure, while the local firms consist of D.M. Wenceslao & Associates, Inc.; Filinvest Development Corporation Utilities, Inc.; S.L. Development Construction Corporation; SPC Island Power Corporation; Therma Power Visayas, Inc.; Trans-Asia Oil and Energy Development Corporation; and Vivant Corporation.

"With the new terms that PSALM has incorporated in the sale of the power barges, we thank the interested parties for their positive response," PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. said.

At the pre-bid conference held on Wednesday (07 August 2013) at its Makati City office, PSALM bared that all eight bidders were present to discuss the bidding procedures as well as salient features of the sale.

PSALM has set the deadline for the submission of bids on 09 October 2013 at 12:00 noon, after which the opening and evaluation of bids would follow.

Mr. Ledesma earlier reported that significant changes have been incorporated in the sale of PBs 101-104 to address the bidders' previous concerns. "We are selling the Iloilo-based PBs 101-103 as one package and the Davao-based PB 104 as another package. Transfer to Mindanao will no longer be a requirement for PBs 101-103, but the winning bidder for PB 104 will be required to operate the barge in Mindanao for at least five years," he said.

The PSALM Board has also agreed to sell the power barges on an "as is, where is" basis. "This means that no purchase request or purchase order will be attached to the sale agreement," Mr. Ledesma added.

PBs 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 (8) MW each. Commissioned in 1981, PBs 101 and 102 are currently stationed at Bo. Obrero in Iloilo City. PBs 103 and 104, which began operating in 1985, are moored in Botongon, Estancia, Iloilo, and at the Holcim Compound, Ilang, Davao City, respectively.

Strategic Communications and Partnership Division
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