MANILA, Philippines—State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is looking to bid out four diesel-run power barges in December, as the government continues to divest its power-generation assets as mandated by law.
PSALM president and CEO Emmanuel R. Ledesma Jr. said in an interview that the target was to publish the invitation to bid documents by the end of this month, and then conduct the bidding proper for PBs 101, 102, 103 and 104 by December this year.
Ledesma told the Inquirer that winning bidders would be required to transfer the barges currently moored in the Visayas to Mindanao as soon as the power supply in the Visayas stabilizes.
This condition had been approved by the PSALM board, he added.
Energy Secretary Jose Rene D. Almendras said earlier this year that the government had wanted to mandate potential buyers to transfer the power barges and station these in Mindanao for a certain number of years—about 10 years, based on the proposal of some members of the House committee on energy.
The transfer of the diesel power barges was meant to avoid the rotating brownouts that Mindanao suffered last year, given its heavy reliance on hydropower plants.
Mindanao sources more than half of its electricity requirements from hydropower sources, with the Agus-Pulangi hydropower complex providing over 700 megawatts.
At present, three of the power barges are moored in Visayas, namely, PB 101 (Muelle, Osmeña, Lapu-lapu City); 102 (Barrio Obrero, Iloilo City); and 103 (Botongan, Estancia, Iloilo). PB 104 is moored in the Holcim Wharf, Ilang, Davao City. Each of these power barges can generate 32 MW.
The bidding for these four barges is expected to conclude PSALM’s privatization activities for 2011.