Sale of 3 power barges canceled

Manila Standard Today
By Alena Mae S. Flores | May. 24, 2014 at 12:01am

SPC Island Power, a unit of SPC Power Corp., has terminated an agreement with the government to purchase Power Barges 101, 102 and 103 following the severe damage suffered by one of the plants during the onslaught of super typhoon Yolanda last year.

SPC said in a disclosure to the Philippine Stock Exchange Friday that the typhoon heavily damaged PB 103 on Nov. 8, 2013 before the closing date and turnover of the barges to SPC Island.

“The damage compromised the structural integrity of the generators and auxillaries of the PB 103 and significantly affected the reasons underlying the SIPC’s bid for the PBs,” SPC said.

PSALM held an auction for the 32-megawatt Power Barge 101 and 32-MW PB 102 moored in Obrero, Iloilo City, and the 32-MW PB 103 in Estancia, Iloilo as one package on Oct. 30, 2013. SPC Island won the bidding.

“Inasmuch as the delivery of the PB’s to SIPC could not be predicted, SIPC sent PSALM on March 13, 2014 a notice terminating the related Asset Purchase Agreement....,” SPC said.

PSALM in its reply letter of March 19, 2014, informed SIPC that it will review the termination notice and will accordingly advise SIPC of its further action or decision on the notice. As of today, May 22, 2014, PSALM has not yet informed SIPC of its decision. As far as SIPC is concerned, the APA has been effectively terminated,” it said.

SPC Island, owned by SPC Power Corp., submitted the highest bid of P545.89 million for Power Barges 101, 102 and 103, besting the offer of Trans-Asia Oil & Energy Corp., which offered P370.52 million.

The power barges were offered in two packages, with the first comprising of the three Iloilo barges (PB 101, 102 and 103), and the second involving PB 104 located at the Holcim compound in Ilang, Davao City.

PSALM declared a failure of bidding for the second package, after the two companies did not meet the reserve requirement, which PSALM did not disclose. SPC Island submitted a bid offer of P45.888 million for PB 104 against Trans-Asia’s P30 million.

PSALM president Emmanuel Ledesma Jr. said the agency would discuss the impact of SPC’s decision and whether the barges could be transferred to Mindanao. source