16 Jan 2018
The Power Sector Assets and Liabilities Management (PSALM) Corporation is bent on achieving its privatization targets this year, particularly the sale of its expensive plants to cut on operational costs and to augment funds for paying-off its assumed obligations that will significantly benefit the government and the electricity end-users.
PSALM will seek its Board’s definitive policy on the privatization of Malaya Thermal Power Plant and Mindanao Coal-Fired Power Plant. The sale of Malaya plant was previously deferred because of the plan of the Department of Energy (DoE) to convert it into a liquefied natural gas plant. PSALM has yet to receive a final word from the DoE on the natural gas policy which will be included in the plant’s sale terms of reference.
For Mindanao Coal, the sale of which was deferred in 2015, PSALM may further await an appropriate time to offer the plant on the sale block. Reprieved from power outages in recent years, Mindanao, this time, is currently experiencing oversupply of electricity following the entry of new power plants. Under this circumstance, PSALM deems that the plant may not attract maximum investment.
Meanwhile, PSALM will continue to manage, trade and sell the energy output of the Unified Leyte (UL) Geothermal Power Plant including the 40-MW ‘strip of energy’ under PHINMA Energy Corporation’s administration, the agreement of which has been mutually terminated recently. PSALM may no longer subject the plant to public bidding as its Independent Power Producer contract will be expiring in 2021-2022.
PSALM is keen on commencing the rehabilitation of the Agus-Pulangi Hydroelectric Power Plants aimed at extending the facilities’ service life by 30 more years and to increase the plants’ reliability and availability. As the owner, PSALM must have laid down by 2019 the feasibility, terms of reference including funding options and overall groundwork for the project. As the operator, the National Power Corporation will implement the project.
PSALM will also prioritize this year the sale of 231 lots as part of its real estate asset privatization program. In its inventory and profiling, PSALM’s land properties are comprised of 6,160 lots with aggregate area of about 10,000 hectares.
Lined up for public bidding this January includes eight lots (20,975 sq.m) of Manila Thermal Power Plant and 92 lots (257,995 sq.m) of Bauang Diesel Power Plant.
Interested bidders will have until 22 January 2018 to conduct due diligence for said properties while submission of bids is set on 24 January 2018.
To be sold on an “as is, where is” basis, the bidding is open to individuals and sole proprietorships, partnerships or corporations duly registered and organized under the laws of the Philippines and at least 60% Filipino-owned, joint ventures or consortiums, government corporate entities and local government units authorized by law to acquire, own, hold or develop real properties in the Philippines.
In December 2017, PSALM also issued ‘Offer to Sell” for its two-unit Puerto Azul Ocean Villas Condominium located in Cavite to members of the Puerto Azul Golf and Country Club (PAGCC). The offer will be valid for six months. If the units remain unsold after the expiration of the prescribed period, PSALM will open the sale of the property through public bidding.
The sale of non-power assets will augment PSALM’s funding sources.
Corporate Communications Division