SPC tops bidding for PBs 101-103

30 Oct 2013

SPC Island Power Corporation has emerged as the highest bidder for Power Barges (PBs) 101-103, while the bidding for PB 104 was declared a failure, the Power Sector Assets and Liabilities Management (PSALM) Corporation reported at the culmination of the bidding held today, 30 October 2013, in Makati City.

Specifically, PSALM said SPC Island Power submitted a bid of PhP546 million (PhP545,888,999.99) for Package 1 of the sale, which is made up of the Iloilo-based PBs 101-103. It edged out Trans-Asia Oil and Energy Development Corporation which offered PhP371 million (PhP370,516,000.00). PSALM said that both bids met the Reserve Price set by the PSALM Board.

"The declaration of the winning bidder for Package 1 will be done at a later date in accordance with the Bidding Procedures, subject to the confirmation and verification of the accuracy, authenticity and completeness of the documents submitted, including the standby letter of credit," PSALM President and Chief Executive Officer Emmanuel R. Ledesma, Jr. said.

Meanwhile, PSALM declared the bidding for Package 2 or the Davao-based PB 104 a failure since none of the bidders met the Reserve Price for the asset package.

To address the bidders' concerns in the past, significant changes were incorporated in the sale of PBs 101-104. The Iloilo-based PBs 101-103 were combined as a package, with the transfer to Mindanao no longer a requirement of the sale. Only the winning bidder for PB 104 will be required to operate the barge in Mindanao for at least two (2) years.

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

The PBs are nominal 32-megawatt (MW) barge-mounted bunker-fired diesel generating power stations that consist of four (4) identical Hitachi-Sulzer diesel generator units rated at eight (8) MW each. PBs 101-102 are currently stationed at Bo. Obrero in Iloilo City and were commissioned in 1981. PBs 103 and 104 - moored in Botongon, Estancia, Iloilo and at the Holcim Compound, Ilang, Davao City, respectively - began operating in 1985.

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