Power Sector Assets and Liabilities Management Corp. (PSALM) is pushing for the privatization of a five-hectare (ha) real estate asset in Pampanga at a minimum of P803.2 million after a third attempt to sell the 650-megawatt (MW) Malaya power complex for P2.2 billion failed.
“This is a prime real property of PSALM, in a good location with a clean title,” the state-firm’s president and chief executive Irene Besido Garcia, said in a statement.
“[The lot] can be used for various commercial purposes,” Garcia said. “PSALM is selling this property on an as-is-where-is basis.”
According to PSALM, three prospective bidders attended a prebid conference held on Sept. 24. They include United Ascent Holdings Inc., Panasia Energy Inc. and Pan Pacific Renewable Power Philippines Corp.
Bids for the 50,447-square-meter property located in Barangay Lagundi in Mexico town should be submitted no later than 2 p.m .on Oct. 20.
Suitable for residential and commercial land development, the lot is along Jose Abad Santos Avenue and is 2.5 kilometers from the North Luzon Expressway.
Proceeds from the sale will be used to augment collections needed to settle PSALM’s financial obligations.
PSALM was created pursuant to the Electric Power Industry Reform Act of 2001 to take ownership of the existing generation assets, power plant contracts, real estate and all other disposable assets of Napocor and to assume Napocor’s liabilities and obligations which amounted to P830.7 billion when the law was passed.
These obligations peaked at P1.24 trillion in 2003 and, as of the end of 2019, has been reduced to P422 billion.
Government losses of at least P556 million and as high as P1.2 billion yearly might continue as the PSALM yet again failed to privatize the 650-MW Malaya power plant and the land it sits on in Rizal province.
Earlier this week, PSALM said neither of the two companies that prequalified for a third attempt at competitive bidding submitted an offer.
Panasia Energy Inc. sent notice that the company did not submit a bid because “the purchase of the Assets is not financially viable for Panasia.”
The other prequalified bidder—AC Energy Philippines— said the Ayala group subsidiary could not meet the minimum bid price. INQ