Psalm starts talks with Trans-Asia on privatization of power barges

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM), the government agency tasked to privatize state-owned power assets, has started negotiations with the Phinma Group’s Trans-Asia Oil & Energy Corp. for the privatization of Power Barges 101, 102 and 103.

“We have started negotiations with them pursuant to the board’s approval,” said PSALM president Emmanuel Ledesma Jr.

He said PSALM expects to conclude the negotiations within 30 days.

Ledesma said PSALM has received the ruling of the Office of the Government Corporate Counsel (OGCC) on the matter, giving it the go-signal to negotiate with Trans-Asia, the second highest-ranking bidder for the facilities.

SPC Island Power, a unit of SPC Power Corp., emerged as the highest bidder for PB 103 with P545.89 million during a bidding last year but the company decided to terminate its asset purchase agreement with the government after PB 103 suffered severe damage from Super Typhoon Yolanda last year.

Trans-Asia, the power unit of the Phinma Group, is the second highest bidder of the barges, with an offer of P370.52 million.

PSALM sought for an OGCC opinion on whether it could negotiate with the second winning bidder.

These power barges 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 MW each.  PBs 101-102 are currently stationed at Brgy. Obrero in Iloilo City and were commissioned in 1981.  PBs 103 and 104 are moored in Botongon, Estancia, Iloilo and at the Holcim Compound, Ilang, Davao City, respectively and began operating in 1985.

The government offered the barges in two packages consisting of PB 101, 102 and 103 for the first package and PB 104 as the second package.

Bidding for PB 104 was declared a failure as bidders did not meet the requirements, according to PSALM.