In addition to the power assets, the EPIRA also directed PSALM to take ownership and implement a sale or privatization program for the real estate and all other disposable assets.
Real Estate Properties
PSALM has real estate assets with an aggregated land area of around 100 million square meters (sqm), consisting of 6,160 lots located in various parts of the country. Around 60% of the total land area is located in Luzon, 39% in Mindanao and the remaining 1% is in the Visayas.
PSALM’s Real Estate Properties Per Location
|Location||Area (sqm)||Number of Lots|
PSALM’s Real Estate Properties Per Location Type
|Location||Area (sqm)||Number of Lots||% Share to Total|
|Sold Plants With Land Lease Agreement (LLA)||7,118,673||1,179||7.09%|
|Sold Plants Without LLA||22,758,601||1,337||22.66%|
|Remaining Power Plants||39,051,871||1,164||38.88%|
|IPP Plants With IPPA||18,476,629||1,715||18.40%|
|IPP Plants Without IPPA||5,342,049||503||5.32%|
Note: PSALM’s real estate statistics are subject to change with the developments in database clean-up and updating.
PSALM has formulated a Strategic Plan which proposes that the use, management and privatization of real estate properties shall generate the highest financial return for the liquidation of PSALM's financial obligations. This will eventually lead to the reduction of stranded/residual debts of the Corporation and the eventual minimization of additional power charges or taxes, as well as in energy security and facilitate local/national development by packaging the assets as location for new power plants and new economic activities, respectively.
In terms of priority, the Strategic Plan proposes to continue the current efforts of PSALM to complete the sale through Option Existence Notice (OEN) for land under LLA and pursue the following priorities in the privatization of the remaining real estate assets:
- Priority I: Sites of Decommissioned Power Plants
- Priority II: Non-Power Assets (Lands in Various Locations)
- Priority III: Lots with Issued OENs But Not Exercised by SGC
- Priority IV: Land Adjacent to/Near Privatized Power Plants/IPP Plants
- Priority V: Land Adjacent to/Near Remaining Owned Power Plant/IPP Plants
Excluded Assets and Other Disposable Assets
PSALM is also set to dispose excluded assets from sold plants such as spare parts, equipment, scrap materials, and other disposable items.