Psalm seeks to raise P527M in third attempt to sell Paco property

State firm Power Sector Assets and Liabilities Management Corp. (Psalm) is having another go at a negotiated sale of a group of lots at the site of the decommissioned Manila Thermal Power Plant, this time aiming to raise at least P527 million.

In their latest invitation to interested parties, Psalm said this third round would go through a prenegotiation conference on Aug. 10, and offers submitted by noon of Aug. 31.

The previous attempt to negotiate a sale of eight separate and vacant lots with a total area of 20,975 square meters was in December 2020, when the floor price was set at P458.3 million. Bidders were unable to fulfill the requirements.

Psalm requires that a prospective buyer of the properties on Isla de Provisor along the Pasig River in Manila be at least 60-percent Filipino-owned. The power plant was successfully sold in 2008.

“The [lots are] situated in a prime area, being [close] to a major shopping mall, several government institutions, colleges and universities and business establishments,” Psalm said.

“The immediate area where the [lots are] located is classified as medium intensity mixed zone—mostly warehouses—and university cluster zone,” Psalm added. These include, among others, a substation of the Manila Electric Co., the Torre de Manila condominium building and respective malls of the SM and Robinsons groups as well as Adamson University, Technological University of the Philippines and Philippine Women’s University.

P482.4 million market value

The lots, which are just 1.5 kilometers from Malacañang, were assigned a fair market value of P482.4 million by the Office of the City Assessor in Manila.

The eight lots are covered by four titles. Of the eight, the biggest has an area of 10,025.4 square meters while the smallest is described as 3.8-square meters and sharing a land title with a 297.4-square meter lot.

As of end-2020, Psalm’s outstanding obligations totaled P381.9 billion.

Psalm obligations, assumed from the National Power Corp. pursuant to the Electric Power Industry Reform Act of 2001, peaked at P1.2 trillion in 2003.

In 2020 alone, the state firm shaved off P40.1 billion from its principal financial obligations. Psalm also paid interests and borrowing costs totaling P11.56 billion.

Also last year, Psalm collected deferred privatization proceeds amounting to P38.7 billion, composed of payments from Independent Power Producer Administrators, or private firms that operate and maintain Psalm assets, and from the concession payments from the transmission business.

According to Psalm, it has streamlined its privatization processes and biddings to allow bidders to participate through online platforms and to minimize face-to-face transactions, in response to the COVID-19 pandemic.