29 Nov 2013
On 11 November 2013, at 7:01 A.M., PSALM received information from the National Power Corporation (NPC), which operates and maintains Power Barge (PB) 103, that PSALM's PB 103 sustained heavy damage, bunker fuel spilled due to damaged fuel tanks, and mooring chains were cut off, as an unfortunate result of Typhoon Yolanda that hit Estancia, Iloilo on 08 November 2013. PSALM then required the security agency contracted for PB 103, to submit an incident report as part of PSALM's security protocol.
Upon receipt of such information, PSALM likewise notified Government Service Insurance System (GSIS), which is PSALM's insurer for its Industrial All-Risk and Protection and Indemnity policies. In addition, given that telecommunications lines were cut off, PSALM immediately sent personnel to PB 103 to confirm the report and gather further information. They also checked on the status of PBs 101 and 102 located in Bo. Obrero, La Paz, Iloilo. Additional PSALM personnel were deployed to PB 103 to work with NPC, Philippine Coast Guard (PCG), the Estancia municipal government, and the Iloilo provincial government to address the situation.
Based on additional information provided by NPC and PSALM personnel, the barge was de-moored approximately 250 meters from its mooring site and ran aground the shoreline of Barangay Botongon, thereby causing damage to fuel tanks and spillage of bunker fuel. Moreover, clean-up of waste oil and oily debris were conducted soon after the spill, with the collaboration of the PCG, NPC personnel on site, and local residents.
After requisite coordination with GSIS, its reinsurers, the NPC, and the PCG, an emergency procurement for the following necessary services, as stated under the Request for Proposal (RFP) issued by the PSALM Bids and Awards Committee (BAC), was set in the evening of 20 November 2013:
1. Oil spill containment and coastal clean-up of the shoreline of Barangay Botongon, and that of other affected barangays.
2. Removal, transport and treatment/disposal of waste oil and debris.
3. Siphoning of remaining usable fuel oil in PB 103 in Estancia, Iloilo and transport thereof to PB 101-102 located Barrio Obrero, La Paz, Iloilo City.
4. Refloating of PB 103.
5. Towing of refloated PB 103 to a dry dock facility.
The RFP required the contractor to secure the PCG's approval of its Salvage Plan, obtain all necessary permits and licenses for the environmental clean-up/disposal of waste oil and debris from the appropriate government agency (e.g. Department of Environment and Natural Resources), and submit to PSALM a detailed timeline of activities. The contractor was also required to immediately mobilize within 48 hours.
Kuan Yu Global Technologies Inc. (Kuan Yu) won the bidding. Its bid as read was PhP94,999.888.88 but this was reduced to only PhP87,213,012.70 as calculated. The other bid was in the amount of PhP99,904,000.00. In accordance with the RFP, Kuan Yu was paid a mobilization fee equivalent to 15% of its bid. It would receive an additional 15% of its bid for each of the five services and 10% of its bid as final payment upon submission of a certificate of completion and PSALM's acceptance. The refloating and towing services are strictly on a no-cure no-pay basis. PSALM personnel have been continuously coordinating with Kuan Yu, PCG, NPC, GSIS, local government units and government agencies such as DoH and DENR, including regularly visiting PB 103, to ensure that Kuan Yu faithfully performs its obligations under the contract.
SPC Island Power Corporation (SIPC) won the bid for PBs 101, 102, and 103 (Package 1) in a bidding held on 30 October 2013. PSALM is currently studying the legal ramifications of the damage sustained by PB 103 to the said privatization. PSALM President Emmanuel R. Ledesma, Jr. stated that "PSALM is looking forward to consummate the sale of the whole of Package 1, at the same bid price. Once PB 103 is safely drydocked, it will undergo necessary repairs."
PB 103 is a nominal 32 MW barge-mounted bunker-fired diesel generating power station, consisting of four identical diesel-generator units each rated at 8MW. PB 103 is presently moored in Estancia, Iloilo Province in the Visayas to augment the power requirements during peak hours in that area and in other areas in Panay Island.
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