Aboitiz acquires two 100-MW power-generating barges

Aboitiz Power won a negotiated bid to acquire two barge-mounted, diesel-powered generation plants from PSALM. Each of the plants has a generating capacity of 100 megawatts.

Aboitiz's price offer for the power barges, also known as PB 117 and PB 118, were $16 million and $14 million, respectively. Of these amounts, at least 40 percent will be payable upon closing of the acquisition with the remaining 60 percent payable over a period not to exceed seven years.

Aboitiz will acquire PB 117, located in Barangay Sta. Ana, Nasipit, Agusan del Norte, through its wholly owned subsidiary Therma Mobile, Inc. PB 118, located in Barangay San Roque, Maco, Davao Del Norte, will be acquired by another wholly owned subsidiary Therma Marine, Inc.

The power barges are currently being operated by Burmeister & Wain Scandinavian contractor Mindanao, Inc., under contract with the National Power Corporation.

The closing of the transaction will depend on the fulfillment of certain conditions preceded by Aboitiz and PSALM or Power Sector Assets and Liabilities Management Corporation. It must occur not later than 270 days from PSALM's issuance of the award letter, which is expected within ten days from 31 July.

When the power barges are turned over to Aboitiz, its attributable generating capacity will be 1,240 MW.