Therma Mobile Inc., acquired the 100-megawatt (MW) Power Barge (PB) 117 for USD16 million, while Therma Marine Inc. bought the 100-MW PB 118 for USD14 million in a negotiated bidding successfully conducted by the Power Sector Assets and Liabilities Management Corporation (PSALM) last 31 July 2009.

Therma Mobile and Therma Marine both bid USD12 million for PB 117 and PB 118, respectively. After having been informed that their offers were below the reserve price set by the PSALM Board, officials of the two companies agreed to match the reserve price for the two power barges.  

Therma Mobile and Therma Marine are domestic companies wholly owned by Therma Power Inc., which is 100% owned by the Aboitiz Power Corporation (APC). By successfully concluding the negotiations, APC continued to support the government’s privatization efforts as it added two more power plants to its string of acquisitions.

PSALM resorted to a negotiated bidding after the first and second rounds of bidding for the two power barges failed because of lack of sufficient number of investors. Under applicable government rules, PSALM can negotiate with interested parties after a failed second round of bidding.

As has been its practice in all its bidding exercises, PSALM will verify the accuracy, authenticity and completeness of all the bid documents that Therma Mobile and Therma Marine had submitted. PSALM will then issue the Notice of Award to both corporations, officially declaring them as the winning bidders for PB 117 and PB 118, respectively.

With the sale of PB 117 and PB 118, PSALM has now sold four power plants based in Mindanao to include the 3.5-MW Talomo Hydroelectric Power Plant in Davao that was bought by Hydro Electric Development Corporation for USD1.37 million, and the Agusan Hydroelectric Power Plant in Bukidnon that was acquired by First Generation Holdings for USD1.53 million.