TA wins bid for PSALM power barges for P420M

Trans-Asia Oil and Energy Development Corp. (TA) topped the bid for three power barges each with a capacity of 32 megawatts (MWs) of state power assets holding firm Power Sector Assets and Liabilities Management (PSALM) with an offer of P420 million in cash.

“Both PSALM and TA have already delivered to each other their respective closing documents and payment of the purchase price by TA to PSALM in the amount P420 million,” Trans-Asia said in a report to the Philippine Stock Exchange (PSE).

Trans-Asia actually came second with a P371-million bid, but the P545.88 million winning bid of SPC Island Power Corp. was terminated after SPC opted out of its Asset Purchase Agreement (APA) with PSALM after Typhoon “Yolanda” damaged one of the power barges up for bid.

With SPC’s termination of the APA, Trans-Asia increased its bid to P420 million for the package and signed a memorandum of agreement (MOA) with PSALM for the negotiated sale.

PSALM has turned over the power barges, which has four generator units each, to Trans-Asia last week.

The power barges will remain on their current locations, under the agreement, with two power barges located in Barrio Obrero, Iloilo City, while one (Barge 103) is undergoing repair at the Keppel Subic Shipyard in Zambales.

The power generation and upstream firm said the acquisition of the power barges will add to TA’s growing power generation portfolio that includes its diesel power plants in Norzagaray, Bulacan; Bacnotan, La Union; Guimaras and Subic; its 52-MW wind farm in San Lorenzo, Guimaras; the Maibarara Geothermal plant; portion of the Sem-Calaca power plant; a 40-MW capacity from the Unified Leyte Geothermal Power Plant and the 135- MW South Luzon Thermal Energy Corp. coal power plant in Calaca, Batangas.