The state-run Power Sector Assets and Liabilities Management Corp. (PSALM) on Friday said the negotiations on the sale of four diesel-fired power barges failed again after Trans-Asia Oil and Energy Development Corp. was not able to match the reserve price for all the facilities.
According to PSALM president and CEO Emmanuel R. Ledesma Jr., Trans-Asia Oil decided not to match the reserve price and that the difference with the offer presented by the Phinma-led company was “substantial.”
Trans-Asia Oil quoted a price of P43.83 million for Power Barges 101 and 102; P1 million for Power Barge 3 and P50.13 million for Power Barge 4, or a total of P95 million. PSALM, however, did not disclose the reserve price for the assets.
This was the second time that PSALM has attempted to sell the power barges and failed.
The first bidding held in May this year was considered a failure after PSALM received only one offer from ACTA Power Corp., a joint venture between the Ayala group’s AC Energy Holdings and Trans-Asia Oil.
The second bidding was held Friday, but was declared a failure after receiving, again, only one offer, this time from Trans-Asia. PSALM was expecting two other groups to submit offers, namely First Gen Visayas Energy Inc. and Oriental Energy and Power Gen Corp., but these firms were not present during Friday’s bidding.
Immediately after the declaration of a failed bidding at noon Friday, Ledesma said the PSALM board immediately gave its go-ahead for PSALM to enter into negotiations with Trans-Asia Oil for the sale of Power Barges 101 to 104. . Under the law, PSALM is allowed to enter into negotiations with an investor group after two failed biddings.
The failure to sell these barges even under the terms of a negotiated bid may worsen the expected critical power situation in Mindanao by summer of next year as the government sees a 200-megawatt supply shortage on the electricity-starved island.
The government has been banking on these power barges to provide the much-needed capacity in Mindanao by 2013.
One of the conditions in the sale of the power barges was that the winning bidder must transfer the three Visayas-based power barges to Mindanao as soon as possible. PB 101 and 102 are both stationed in Barangay (village) Obrero in Iloilo City; PB 103 is in Botongon, Estancia, Iloilo, while PB 104 is at the Holcim Compound in Ilang, Davao City.
According to Ledesma, the PSALM board would have to discuss the next step after two unsuccessful bidding attempts and a failed negotiation. Under the procedures, with all options subject to board approval, PSALM could either rebid or renegotiate with potential buyers.