After failed bid, gov’t may have to scrap power barges | Inquirer Business

After failed bid, gov’t may have to scrap power barges

PSALM considers holding another auction
By: - Reporter / @amyremoINQ
/ 01:39 AM October 15, 2012

MANILA, Philippines—After failing to auction off four diesel-fired power barges in the Visayas and Mindanao, the state-run Power Sector Assets and Liabilities Management Corp. (PSALM) is now considering three options, one of which is to decommission some of the facilities.

“PSALM has outlined a number of options taking into consideration the current situation in Mindanao and recommendations of the National Power Corp. I shall submit these to the PSALM board for direction,” said PSALM president and CEO Emmanuel R. Ledesma Jr.

In an interview, Ledesma said that among the options being considered for Power Barges 101, 102, 103 and 104 were the rebidding of the facilities, the transfer of the three Visayas-based power barges (101, 102 and 103) to Mindanao at the expense of the government, and the decommissioning of the Visayas facilities.


The decision, Ledesma stressed, will be subject to the approval of the PSALM board.


PSALM has been trying to auction off the four power barges, which are supposed to provide the much-needed capacity in electricity-starved Mindanao by summer of next year, when a 200-megawatt supply shortfall is expected.

The initial plan was for the private sector to acquire the power barges and shoulder the costs of transferring the Visayas facilities to Mindanao. PB 101 and 102 are currently stationed at Barrio Obrero in Iloilo City, while PB 103 is moored off Botongon, Estancia, Iloilo. PB 104 is already in Mindanao.

Last May, PSALM declared a failure of bidding after it received only one offer from ACTA Power Corp., a joint venture between the Ayala Group’s AC Energy Holdings and Trans-Asia Oil and Energy Development Corp. (TA-Oil).

The second bidding was also declared a failure after PSALM received only one offer, this time from Trans-Asia Oil.

Ledesma said he wanted to privatize the power barges and use the proceeds from the sale to help pare down debts worth $15.58 billion as of end-2011.

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TAGS: failed bidding, Government, Philippines, power barges, Power Sector Assets and Liabilities Management Corp. (PSALM)

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