Shell, PSALM Ink PhP98M Supply Contract

Pilipinas Shell Petroleum Corp. will supply the 2011 engine-lubricating oil (ELO) requirements of the power barges of the Power Sector Assets and Liabilities Management Corp. (PSALM).

In a ceremonies held in Makati City on February 17, 2011, PSALM and Shell officially signed the contract agreement amounting to PhP98 million (PhP98,164,167.00) for the supply and delivery of 1.1 million liters (1,107,200 liters) ELO requirements of the Iloilo-based Power Barge (PB) Nos.101, 102 and 103, and the Davao City-based PB 104 for this year. The procurement project emphasizes energy security as the government’s foremost concern in the restructuring of the electric power industry, PSALM said.

“This agreement entails not just ensuring the fuel requirements of our diesel-fed power plants, but also providing safe, optimal, and dependable operations through the proper maintenance of their equipment,” said PSALM President and Chief Executive Officer Emmanuel R. Ledesma Jr.

PSALM added that the project also mirrors PSALM’s commitment to transparency in all its transactions.

“This event is a testament to PSALM’s commitment to transparency and to the rule of law in the implementation of its various activities. In this case, it is our faithful compliance with Republic Act No. 9184, the Government Procurement Reform Act,” Ledesma said.

The offer of Shell, after undergoing post-qualification, was declared by the PSALM Bids and Awards Committee on Fuel as the Lowest Calculated Responsive Bid for the procurement project.

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