SPC Island Power Corp. has won the bidding for Power Barges (PBs) 101-103 after outbidding another competitive energy player, Trans-Asia Oil and Energy Development Corp.
The PBs 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 8 MW each.
PBs 101-102 are currently stationed at Barrio Obrero in Iloilo City and were commissioned in 1981, while PBs 103 and 104—moored at Botongon, Estancia, Iloilo, and at the Holcim Compound, Ilang, Davao City, respectively—began operating in 1985.
SPC Island Power submitted a bid of P546 million for package 1 of the sale, which is made up of the Iloilo-based PBs 101-103, outbidding Trans-Asia which offered P371 million, the Power Sector Assets and Liabilities Management (Psalm) Corp. said.
“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,” Emmanuel Ledesma Jr., Psalm president and chief executive officer, said.
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 years.
However, the bidding for package 2 involving the Davao-based PB 104 was considered a failure after none of the bidders met the reserve price set by Psalm for the asset package.
To address the bidders’ concerns in the past, significant changes were incorporated in the sale of PBs 101-104.
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.