Psalm eyes sale of Mindanao power barge

by Lenie Lectura – December 1, 2015

from Business Mirror

THE Power Sector Assets and Liabilities Management Corp. (Psalm) is planning to sell a power barge (PB) in Mindanao through a negotiated sale in early 2016, the agency’s president said.

“PB 104 is scheduled [for disposal] by early part of next year. It will most probably [be a] negotiated sale. We hope to dispose of this asset by next year,” Psalm President Lourdes Alzona said in a text message.

Psalm, she said, is just waiting for the issuance of an opinion from government lawyers. “It will be soon available,” Alzona added.

The agency earlier asked the Office of the Government Corporate Council (OGCC) if it can pursue a negotiated sale of PB 104 following three failed auctions.

Bidding for PB 104 was declared a failure in the past because bidders did not meet the reserve price for the asset, according to Psalm.

“There were only two bidders during the last bidding. But the letter of interest came from only one bidder. So, we asked OGCC if we can enter into negotiation with them,” Alzona added.

PSALM’s last attempt to sell the 32-megawatt (MW) PB was in October 2013. The two bidders back then were Trans-Asia Oil and Energy Development Corp. and SPC Island Power Corp.

PB 104, which began operating in 1985, is moored in Davao City. It generates electricity from thermal sources and operates as a subsidiary of the National Power Corp.

Psalm was earlier allowed to enter into a negotiate bid for PBs 101 to 103 after securing the green light from government lawyers.

Back then, SPC was declared as the highest bidder for the three PBs but later withdrew its bid, citing damage caused by Supertyphoon Yolanda (international code name Haiyan) to PB 103.

The three PBs were sold as one package.

Psalm then negotiated with Trans-Asia, which submitted a lower bid next to SPC, to conclude the privatization process for the three PBs.

PBs 101 and 102 were commissioned in 1981. These are in Barrio Obrero, Iloilo City.

PB 103, meanwhile, began operating in 1985. It is located in Estancia, Iloilo City.