Maibarara sole bidder for one Psalm property in Batangas

MANILA, Philippines — A subsidiary under Yuchengco Group’s PetroEnergy Resources Corp. (PERC) emerged as the sole bidder for one of the Power Sector Assets and Liabilities Management Corp.’s (Psalm) properties in Batangas.

Psalm said Maibarara Geothermal Inc. (MGI), the operator of a geothermal power project in Santo Tomas, emerged as the lone bidder for the three lots of its Maibarara Property.

MGI—a joint venture of PetroGreen Energy Corp., PHINMA Energy, and PNOC Renewable Corp.—submitted a bid amounting to P473.17 million, the same as the minimum bid price set by Psalm.

Psalm said MGI’s proposal was conditionally accepted, pending the completion of the post-qualification process.

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“Psalm’s Privatization, Bids, and Awards Committee declared that this process would verify the accuracy and authenticity of the eligibility documents provided by MGI,” it said.

The state-run corporation said proceeds from this transaction will be used to settle the remaining stranded contract costs and stranded debts that Psalm assumed from the National Power Corp. (Napocor).

MGI Corporate Secretary Maria Carmela Hautea said the two lots used by MGI for its steamfield and access road are covered by an existing lease agreement with Psalm.

“We submitted a bid to acquire these lots, including another lot for our outfield reinjection. The award to MGI followed after 2 earlier failed bidding of Psalm,” Hautea said.

The property is comprised of three lots with an area of 58,911 square meters situated in San Rafael, Santo Tomas City, Batangas, and Calamba City, Laguna.

According to Psalm, Lot No. 4256-A is covered by a one-year land lease agreement between Psalm and MGI that will expire on April 14, 2025.

READ: Psalm has P282.6B left to pay

The other two, Lot No. 5255-B (Lot B) and Lot No. 5253-A, are covered by another LLA among National Power Corp., Psalm, and MGI for 25 years, which will expire on May 2, 2037.

Although these accords did not restrict the rights of the firm to sell the subject lots to a third party, Psalm said the buyer should respect and protect the leasehold rights of MGI over the Properties.

“In relation to the foregoing, the unused rent of MGI for the remaining term of the LLAs shall be computed by PSALM and to be deducted from the purchase price or to be paid by PSALM to the winning bidder, whichever is applicable,” it added.

Created through the Electric Power Industry Reform Act of 2001, Psalm is tasked with selling power assets to settle all the liabilities and obligations it assumed from Napocor.

Its financial obligations have declined to P273.51 billion as of December last year from the 2003 peak level of P1.24 trillion.