THE Power Sector Assets and Liabilities Management Corp. (PSALM) has awarded three power barges in Iloilo with a combined capacity of 96 megawatts to Phinma Group’s Trans-Asia Oil & Energy Corp. for P420 million.
PSALM President Emmanuel Ledesma Jr. said they awarded Power Barges 101, 102 and 103 to Trans-Asia, the second highest bidder in the asset sale, after the transaction was cleared by the Office of the Government Corporate Counsel (OGCC).
“Following the instructions from our board, we have signed a memorandum of agreement with Trans-Asia which, in sum, paves the way for the sale of Power Barges 101-103,” Ledesma said.
Under the agreement, Trans-Asia will pay PSALM the agreed purchase price within 30 days.
Trans-Asia had originally submitted an offer of P370.52 million for the three power barges.
PSALM negotiated and awarded the deal to Trans-Asia after SPC Island Power, a unit of SPC Power Corp., terminated its asset purchase agreement with the government.
SPC Island had submitted the highest bid of P545.89 million for the three power barges in an auction in 2013, but decided to cancel the purchase after PB 103 suffered severe damage from Super Typhoon Yolanda (Haiyan).
PSALM sought clearance from the OGCC on whether it could negotiate with the second highest bidder and was given the green light.
The three power barges are nominal 32-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 and 102 are stationed at Barangay Obrero in Iloilo City and were commissioned in 1981 while PB 103 is moored in Botongon, Estancia, Iloilo and began operating in 1985.