07 May 2021
The public negotiated sale conducted today by the Power Sector Assets and Liabilities Management Corporation (PSALM) for the privatization of the 650-megawatt (MW) Malaya Thermal Power Plant (MTPP) was a success. Fort Pilar Energy Inc. was declared as the winning negotiating party after it submitted the highest offer with an amount of PHP3,123,500,000.00. This highest offer surpassed the Minimum Offer Price of PHP1,845,222,000.00 that was set by the PSALM Board of Directors for this negotiated sale process.
The other qualified negotiating party, AC Energy Corporation, submitted an offer amounting to PHP2,220,000,000.00.
The sale of the MTPP is on an “As-Is Where Is” basis. It includes the 300-MW Unit 1 and the 350-MW Unit 2 as well as the underlying land, located in Pililla, Rizal.
“After several attempts to privatize MTPP the last two (2) years, we are very happy to have finally received financial bids substantially above our Minimum Offer Price. We are glad that this culminated in a successful privatization. PSALM definitely needs the proceeds of this privatization activity to pay for the remaining stranded contract costs and stranded debts. MTPP contributed to the losses of PSALM the past many years and so we really looked forward to selling it,” PSALM President and Chief Executive Officer Irene Besido-Garcia said.
As announced during the proceedings, the results of the negotiation exercise will be subject to a post-qualification process to ensure that the winning negotiating party indeed met all the financial and legal requirements as indicated in the negotiation procedures.
Representatives from the Commission on Audit (COA), the Department of Finance (DOF), the Department of Justice (DOJ) and National Power Corporation (NPC) witnessed the proceedings.
MTPP is currently being dispatched as a Must Run Unit (MRU) by NGCP. However, on the turn-over date, MTPP is no longer required to run as an MRU as approved by the Department of Energy (DOE).
Corporate Communications Division