PSALM commences '08 asset sale with decommissioned Manila Thermal plant

05 Feb 2008

The government's power privatization program for 2008 kicks off today as the Power Sector Assets and Liabilities Management Corporation (PSALM) bids out the decommissioned or retired Manila Thermal Power Plant (MTPP) and the underlying land located at Isla de Provisor, Paco, Manila.

Expected to participate in the bidding are JC Ethanol and Metal Trading Corp. a Korea-based company, and Gagasan Steel Sdn Berhad, whose main office is in Malaysia.

In addition to the plant equipment, auxiliaries and accessories, PSALM decided to include the underlying land to the sale of the MTPP to attract more participants in the privatization of the Manila-based decommissioned asset.

Measuring two hectares, the land is ideal for industrial purposes and is located in a prime area. It is near SM Manila and other commercial centers.

PSALM pointed out that since today's bidding is the third for the MTPP, it is looking at the possibility of conducting negotiations with prospective bidders that submitted letters of interest in this round.

PSALM had to move MTPP's original bid date from 19 December 2007 to 06 February 2008 primarily to provide leeway for internal submissions such as the receipt of documentary deliverables from interested parties. Also, PSALM had to cope with the successive scheduled biddings last December capped by the successful privatization of the 25-year concession contract for the National Transmission Corp.

The first two biddings for the MTPP - held in the first quarter of 2005 and the first quarter of 2007 - failed primarily due to lack of investor interest.

Strategic Communications and Partnership Division
Tel. No. (632) 9029067