Aboitiz unit eyes PSALM power barges

Aboitiz Power is mulling over plans to bid for power barges to be auctioned off by state-run Power Sector Assets and Liabilities Management (PSALM) Corp.

“We will definitely look into that,” SVP Miguel O. Aboitiz told reporters.

The company is looking at all energy projects that PSALM is privatizing, he said.

Aboitiz noted that the coming bid now appears to be more interesting because PSALM no longer requires potential winners to move the barges to Mindanao. Potential investors will incur additional costs if they are required to move the barges.

The state firm twice failed in its attempt to auction off the power barges.

PSALM earlier said it would sell four power barges by October this year. The state firm on July 18 published an invitation to bid for Power Barges (PBs) 101, 102, 103 and 104, signaling the start of the power assets sale process.

PSALM president and Chief Executive Officer Emmanuel R. Ledesma Jr. said significant changes have been incorporated in the sale of the power barges to address the bidders’ previous concerns.

“We are selling the Iloilo-based PBs 101-103 as one package and Davao-based PB 104 as another package. Transfer to Mindanao will no longer be a requirement for PBs 101-103. But the winning bidder for PB 104 will be required to operate the barge in Mindanao for at least five years,” Ledesma said.

PSALM’s board of director also agreed to sell the power barges on an “as is, where is” basis, Ledesma said. “This means that no purchase request or purchase order will be attached to the sale agreement.”